Block Inc. 3Q Profit Rises as Square Payment Volume Jumps

What happened

Block Inc. reported third-quarter net income of $565.6 million, or 92 cents a share, compared with $461.5 million, or 74 cents, a year earlier. Revenue rose to $6.72 billion, and Square payment volume grew 14%. Block forecast fourth-quarter adjusted earnings of $1.15 a share.

Confirmed

Global impact / market context

Higher Square payment volume can support revenue by increasing the value of transactions processed, while growth in commerce-enablement and financial-solutions revenue also contributed to the reported increase. Earnings and revenue exceeded analyst expectations, but the fourth-quarter earnings forecast is slightly below the cited analyst estimate.

Analyst inference

The results show stronger reported profit and revenue than a year earlier, with both revenue and adjusted earnings above the stated analyst expectations. The outlook is more mixed: Block forecast $1.15 in fourth-quarter adjusted earnings per share, versus analysts’ $1.16 estimate.

Analyst inference

What to watch

1. Compare fourth-quarter adjusted earnings with the $1.15-per-share forecast and the $1.16 analyst estimate to see whether Block meets its outlook. Analyst inference
2. Watch whether Square payment volume continues to grow, since transaction growth can support payment-related revenue if customers keep using the service. Analyst inference
3. Track commerce-enablement and financial-solutions revenue, the two sources the article said drove revenue growth, for evidence that they continue contributing. Analyst inference

Evidence

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