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  • Earnings
  • blockchain
  • disruptive innovation

What to expect ahead of Block’s Q4 2021 earnings report

Block [SQ], formerly Square, is set to announce earnings this week following a torrid couple of months for the fintech company. Down almost 65% in the last six months, shareholders will be hoping for a reversal in fortunes following a costly earnings miss in November. The stock is already suffering this season following PayPal’s [PYPL] underwhelming earnings and the general rotation away from growth stocks.

This article was originally written by MyWallSt. Read more insights from the MyWallSt team here.

Investors will hope Block can surprise us all with something many companies have been unable to do this earnings season — report both strong earnings and a positive outlook.
 

When is Block’s Q4 earnings date?

Block is set to report its Q4 and full-year 2021 earnings after market close at 5 PM EST on Thursday, February 24, 2022.

How do I listen to Block’s earnings call?

Block’s earnings will be hosted via conference call and live webcast on the company’s investor relations page. A full replay of the webcast will also remain available afterward on the same page following the call.

What to expect from Block’s earnings

Analysts expect Block to post earnings per share (EPS) of $0.23 for the quarter, on revenue of $4.04bn. This would represent a 28% decrease in earnings from the year-ago quarter, and a simultaneous 28% growth in sales. Expansion has been the name of the game for Block lately, with the purchase of buy now, pay later firm Afterpay and the securing of a banking charter both fresh in the minds of shareholders. This should prevent a decline in earnings from derailing the stock, though investors will want solid updates on how the company is set to start moving towards profit.

Considering Block is currently also sitting on approximately $7bn in cash, shareholders will also want to hear exactly what the company plans on doing with this veritable war chest. Reinvestment through acquisitions is the most likely route, but what specific areas are being targeted? Should we expect the firm to double down on its buy now, pay later arm or will the company go all-in on CEO Jack Dorsey’s bitcoin dreams, with reports that the company currently already holds roughly 8,027 bitcoin valued at over $301 million?

Speaking of cryptocurrency, much will be made of how well the company’s Cash App offering is doing. Bitcoin transactions now make up a significant portion of Cash App’s traffic, so a downturn in the crypto markets — as we’ve been seeing lately — could drastically affect Block’s former rapidly growing segment.

 

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