Block reported on Thursday the results of the first quarter that missed Wall Street's expectations and published a disappointing perspective. The stock dropped by 15% in prolonged exchanges.
Here is how the company did, compared to the consensual estimates of LSEG analysts.
- Profit by action: 56 cents, adjusted. This figure may not be comparable to estimates.
- Income: $ 5.77 billions against $ 6.2 billion expected
Income decreased by around 3% compared to $ 5.96 billion a year earlier. Gross profit increased by 9% to $2.29 billion of $ 2.09 billion a year earlier. Missed Forecast of analysts of $ 2.32 billion for the quarter.
Block has provided weaker than expected directive for the second quarter and the full year, reflecting difficult economic conditions. An increasing number of technological companies warn investors from the rest of the year following the announcement by President Donald Trump for balances on goods imported last month.
“We recognize that we operate in a more dynamic macro environment, so we have reflected a more cautious position on macro perspectives in our advice for the rest of the year,” wrote the company in its quarterly report.
The company provides gross profit in the second quarter of $ 2.45 billion and $ 9.96 billion for the full year. Analysts expected $ 2.54 billion and $ 10.2 billion, respectively, according to Streetaccount.
In the first quarter, gross payment volume,, Or a measurement of money that moves in Square and Cash App, came in light at $ 56.8 billion, against expectations of $ 58 billion, according to Streetaccount.
Cash App's gross benefit was a little softer than expected. Financial director Amrita Ahuja cited lower entries and expenses in the tax season, but said that the company expects a resumption later this year, partly due to the national expansion of the borrowing program for the application in cash following regulatory approval.
While Wall Street sells for the results, the financial director Amrita Ahuja said that Block had delivered his most profitable quarter, which, according to her, is “a reflection of the discipline continues in our business and the efficiency with which we operate”.
– Robert Hum of CNBC contributed to this report.
