Square(SQ, $223.99) crushes Q1 earnings expectations
Square shares climbed in after-market trading Thursday, following after the company posted earnings beat for the first quarter.
The digital payments company’s adjusted earnings per share came in at 41 cents, handily topping the 16 cents expected in a Refinitiv survey of analysts.
Revenue soared almost four times in the quarter to $5.057 billion, compared to $3.36 billion expected by Refinitiv.
Gross profit climbed +79% year over year to $964 million in the quarter that ended Mar. 31. Cash App gross profit surged +171% from the year-ago quarter to $495 million.
Square generated $3.5 billion in bitcoin revenue, up 11 times year over year. But bitcoin gross profit was $75 million, or approximately 2% of revenue.
Looking ahead, Square estimates gross profit to grow by more than 135% year over year for its seller ecosystem and by approximately 130% year over year for its Cash App, in April. The company expects year-over-year gross profit growth rates to moderate from April to the remainder of the second quarter, on tougher growth comparisons in May and June.
SQ sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for SQ moved above the 200-day moving average on November 12, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 06, 2024. You may want to consider a long position or call options on SQ as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SQ advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 270 cases where SQ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SQ moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where SQ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SQ turned negative on December 10, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SQ broke above its upper Bollinger Band on December 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SQ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.682) is normal, around the industry mean (30.997). SQ's P/E Ratio (4073.000) is considerably higher than the industry average of (160.694). Projected Growth (PEG Ratio) (0.918) is also within normal values, averaging (2.755). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (2.282) is also within normal values, averaging (57.985).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SQ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a provider of credit card reader solutions for mobile devices
Industry PackagedSoftware