Analysts on Wall Street project that Block (XYZ) will announce quarterly earnings of $0.65 per share in its forthcoming report, representing a decline of 8.5% year over year. Revenues are projected to reach $6.38 billion, increasing 5.7% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Block metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Revenue- Transaction-based' at $1.84 billion. The estimate indicates a change of +9.6% from the prior-year quarter.
The consensus estimate for 'Revenue- Bitcoin' stands at $2.16 billion. The estimate suggests a change of -11.2% year over year.
The collective assessment of analysts points to an estimated 'Revenue- Hardware' of $35.76 million. The estimate indicates a change of +15.1% from the prior-year quarter.
Analysts forecast 'Revenue- Subscription and services-based' to reach $2.33 billion. The estimate points to a change of +23% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenue- Square- Total' should come in at $2.18 billion. The estimate indicates a year-over-year change of +10.5%.
The combined assessment of analysts suggests that 'Revenue- Square- Hardware' will likely reach $31.09 million. The estimate points to a change of +2.4% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Square- Subscription and services-based' should arrive at $384.80 million. The estimate indicates a year-over-year change of +14%.
Analysts' assessment points toward 'Revenue- Square- Transaction-based' reaching $1.77 billion. The estimate points to a change of +10.1% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Cash App- Bitcoin' will reach $2.03 billion. The estimate points to a change of -16.3% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Cash App- Transaction-based' will reach $58.31 million. The estimate indicates a year-over-year change of -21.8%.
Analysts expect 'Revenue- Cash App- Total' to come in at $3.99 billion. The estimate indicates a change of -0.7% from the prior-year quarter.
Analysts predict that the 'Gross Payment Volume (GPV)' will reach $67.65 billion. Compared to the present estimate, the company reported $61.95 billion in the same quarter last year.
View all Key Company Metrics for Block here>>>
Over the past month, Block shares have recorded returns of -20.4% versus the Zacks S&P 500 composite's +1.8% change. Based on its Zacks Rank #4 (Sell), XYZ will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Block, Inc. (XYZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
