Square's (SQ, $79.32) Q4 earnings exceed expectations, but Q1 guidance falls short of analysts' estimates
Square beat fourth quarter earnings estimates, but lagged behind analysts' expectations on first quarter guidance.
The merchant services aggregator & mobile payments company, co-founded by Twitter CEO Jack Dorsey, reported adjusted earnings of 14 cents per share for the fourth quarter, which exceeded analysts’ expectations of 13 cents a share (based on Refinitiv data). The earnings-per-share were also higher compared to the year-ago quarter, by 6 cents.
Adjusted revenue for the quarter surged +64% year-over-year to $464 million, compared to analysts’ estimates of $454 million (based on Refinitiv data). Sales from subscriptions and services in the quarter was $194 million, a +144% jump from a year earlier. Another major win for the company came in the form of its peer-to-peer Cash App’s monthly active customer count doubling from a year earlier to reach more than 15 million in December 2018.
However, the company’s outlook on the upcoming first quarter earnings fell short of analysts’ expectations. Square predicts earnings to range between 6 to 8 cents per share, while analysts’ expected 11 cents a share.
On the other hand, the company’s adjusted revenue guidance for the first-quarter is between $472 to $482 million – not too far off of analysts' estimates of $474 million.
Square shares dropped -3.9% Thursday morning.
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Notable companies
The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Uber Technologies (NYSE:UBER), SERVICENOW (NYSE:NOW), Shopify (NYSE:SHOP), Palo Alto Networks (NASDAQ:PANW), CrowdStrike Holdings (NASDAQ:CRWD).
Industry description
Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
Market Cap
The average market capitalization across the Packaged Software Industry is 10.66B. The market cap for tickers in the group ranges from 291 to 3.15T. MSFT holds the highest valuation in this group at 3.15T. The lowest valued company is BLGI at 291.
High and low price notable news
The average weekly price growth across all stocks in the Packaged Software Industry was 2%. For the same Industry, the average monthly price growth was 4%, and the average quarterly price growth was 4%. CMAX experienced the highest price growth at 220%, while NXTT experienced the biggest fall at -64%.
Volume
The average weekly volume growth across all stocks in the Packaged Software Industry was -6%. For the same stocks of the Industry, the average monthly volume growth was 10% and the average quarterly volume growth was 20%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 52
P/E Growth Rating: 74
Price Growth Rating: 58
SMR Rating: 82
Profit Risk Rating: 89
Seasonality Score: 1 (-100 ... +100)