Block Q4 Earnings Preview: Analyst Says Bitcoin, Trump Factor Could Boost Growth

by Chris Katje Benzinga Staff Writer

Financial technology company Block Inc XYZ could highlight its growth across several sectors along with its place in the cryptocurrency ecosystem when the company reports fourth-quarter financial results Thursday after market close.

Earnings Estimates: Analysts expect Block to report fourth-quarter revenue of $6.29 billion, up from $5.77 billion in last year's fourth quarter.

The company missed analyst revenue estimates in the last two straight quarters, but has beaten estimates in eight of the last 10 quarters.

Analysts expect the company to report fourth-quarter earnings per share of 87 cents, up from 45 cents per share in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in three straight quarters and eight of the last 10 quarters overall.

What Analysts Are Saying: The resurgence of Bitcoin BTC/USD could be a positive narrative for Block, RBC Capital analyst Daniel Perlin said in a new investor note.

The analyst has an Outperform rating and $110 price target ahead of fourth-quarter earnings.

"Given the resurgence in investor interest in bitcoin and the expectation for regulatory clarity, we believe that XYZ's 4Q24 results will include increased commentary regarding it leaning more into its bitcoin strategy," Perlin said.

The analyst said this could include comments on the company's crypto mining and wallets efforts along with commerce use cases.

"We believe the increased commentary combined with a positive narrative will drive investor interest, who will begin the bake more than just its core Cash App and Square businesses into the stock's valuation."

The analyst highlighted Block's 8,363 reported held bitcoin at the end of the third quarter along with incremental bitcoin purchases that could total around $781 million in holdings at the end of the fourth quarter.

Block's push into bitcoin mining could highlight the company's technological expertise and growth in the cryptocurrency ecosystem, Perlin added.

"The bitcoin narrative has more substance now. While positive for the stock, we don't see bitcoin sales as the reason to buy XYZ. What we do see as a more legitimate reason is the belief that longer-term, Block will leverage its two-sided network and integration with the Lightning Network to be the facilitator of bitcoin's commerce use case."

The analyst said Block will operate in several crypto sectors where there are only a handful of competitors.

The analyst views President Donald Trump's pro-crypto stance as positive for Block. The president has appointed several crypto advocates to notable financial roles in the White House administration.

"We believe that regulatory momentum has no reason to slow, which could lead to a greater level of bitcoin's integration into traditional financial services and commerce."

Bank of America analyst Jason Kupferberg recently named Block as a top Payments pick for 2025. The analyst has a Buy rating and a $115 price target.

Kupferberg said Block has the potential to outperform thanks to a favorable macro backdrop and growth in the company's Square gross payments volume.

The analyst said Block will likely achieve the Rule of 40, or revenue growth and profit margin added together, equaling 40 or more, sooner than anticipated. Kupferberg predicts this could lead to Block being added to the S&P 500.

XYZ Price Action: Block stock is down 1.3% to $82.78 on Thursday versus a 52-week trading range of $55.00 to $99.26. Block stock is up 25% over the last year.

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