Block Inc SQ shares up on Friday, after the company reported upbeat results for its first quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

JPMorgan On Block

Analyst Tien-tsin Huang maintained an Overweight rating and price target of $90.

Block reported "solid" first-quarter results, with gross profit of $2.09 billion and EBITDA of $705 million beating Street expectations of $2.02 billion and $590 million, respectively, Huang said in a note. The results imply margins of 34%, helped by $52 million in non-recurring items, he added.

"Cash App's inflows per active, a key metric driving the Cash App growth algorithm, accelerated in 1Q to 11% growth y/y (from 8% in 4Q), with management saying that paycheck deposits are growing faster than overall inflows, meaning Block's efforts to drive direct deposit seem to be gaining traction," the analyst wrote.

Mizuho Securities On Block

Analyst Dan Dolev reaffirmed a Buy rating and price target of $106.

Block reported strong results and Bitcoin came back in the spotlight after a one-year pause, Dolev said.

"While we were happy to see the 2024 gross profit growth guide move up 200bps from 15%+ to 16-17%, our work suggests that guidance remains overly conservative," the analyst wrote. "Our blue-sky scenario suggests that GP growth could reach 20%+ in 2024," he added.

BMO Capital Markets On Block

Analyst Rufus Hone reiterated an Outperform rating and price target of $92.

Block's gross profit beat was driven primarily by Cash App, while Square trends were "only modestly better," Hone wrote in a note. "While many investors anticipated strong margin improvement, SQ raised guidance across the board," he added.

Although Square faces tougher prior-year comps in the second quarter, Cash App faces easier comps, the analyst stated. "We expect momentum across BNPL, Bitcoin, Cash App Borrow and Cash App Card to support a strong 2Q results," he further said.

Check out other analyst stock ratings.

Benchmark On Block

Analyst Mark Palmer maintained a Buy rating and price target of $99.

Block reported a beat-and-raise quarter that was driven by "the latest display of the cost discipline the company has prioritized in recent quarters, as well as a demonstration of operating momentum in both its Cash App and Square business lines," Palmer said.

Management said its guidance raise for 2024 not only reflected the first-quarter beat, but also "heightened expectations for the company for the balance of the year," he added.

Wedbush On Block

Analyst Moshe Katri reaffirmed an Outperform rating and price target of $90.

Block reported transaction revenues of $1.51 billion, subscription and services-based revenues of $1.68 billion, hardware revenues of $32.5 million and Bitcoin revenues of $2.73 billion for the first quarter, Katri said.

"The top priority for Cash App is to bank its existing base, as well as focus on product development and go-to-market strategies," the analyst wrote. "The Company is testing the integration of AfterPay into the Cash App Card; so far it has been testing with strong attach rates; and the full rollout of this integration will depend on test results," he added.

Oppenheimer On Block

Analyst Jake Kooyman maintained a Perform rating on the stock.

Block reported gross profits of $2.09 billion, 4% higher than Street expectations, Kooyman said. Cash App gross profits grew by 25% year-on-year, "driven by an 11% gain in inflows per transacting active and a 7 bps YoY rise in monetization rate to 1.48%," he added.

Square generated gross profits of $820 million, aided by a 9% increase in GPV (gross payment value), the analyst stated. The company raised its gross profit guidance for the full year from $8.65 billion to $8.78 billion, representing 17% year-on-year growth, he further wrote.

JMP Securities On Block

Analyst Andrew Boone reiterated a Market Perform rating on the stock.

"Block showed progress attracting deposits with Cash App inflows per transacting active growing 11% Y/Y, the highest level since 4Q12, while instituting cost initiatives as margins increased across the business," Boone wrote in a note.

"While we acknowledge Cash's progress in winning deposits, we look for greater confirmation in the sustainability of these before we become more positive," he added.

SQ Price Action: Shares of Block had risen by 1.29% to $71.23 at the time of publication on Friday.

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