Block Inc (NYSE:SQ) shares are trading higher Friday morning after the company reported first-quarter financial results.
Block said first-quarter revenue decreased 22% year-over-year to $3.96 billion, which came in below the $4.14 billion estimate. The revenue decline was mainly driven by a decline in Bitcoin (CRYPTO: BTC) revenue, which totaled $1.73 billion and was down 50.1% year-over-year.
The company reported quarterly earnings of 18 cents per share, which came in below the estimate of 21 cents per share. Block said the Cash App ecosystem delivered gross profit of $624 million, an increase of 26% year-over-year. The Square ecosystem delivered gross profit of $661 million, an increase of 41% year-over-year.
Analyst Assessment:
- Needham analyst Mayank Tandon maintained Block with a Buy rating and lowered the price target from $175 to $135.
- Piper Sandler analyst Christopher Donat maintained Block with a Neutral rating and lowered the price target from $130 to $105.
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SQ 52-Week Range: $82.72 - $289.23
The stock was up 3.73% at $99.11 at press time, according to data from Benzinga Pro.
Photo: courtesy of Block.
