Block, Inc. SQ stock initially traded higher but has since reversed after the company reported 2024 fiscal year second quarter earnings. Also, the company announced the authorization of a $3 billion share repurchase program.
The Details: The company reported adjusted EPS of 31 cents missing analyst estimates of 34 cents. Block reported revenue of $6.11 billion missing analyst estimates of $6.27 billion.
The reported sales figure represents a 10.4% year over year growth. In addition, Block reported gross profit of $2.23 billion, operating income of $307 million and adjusted EBITDA of $759 million.
The $2.23 billion billion in gross profit represents a 20% year-over-year growth. The company expects gross profit to be up by 17% for the third quarter and 18% year for the 2024 fiscal year.
The company provided a detailed breakdown of its profits. In the letter to shareholders, the company stated, “Square generated gross profit of $923 million, up 15% year over year, and Cash App generated gross profit of $1.30 billion, up 23% year over year.”
Block reported these earnings after the market closed on Thursday.
How To Buy Block Shares
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Block SQ's case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
SQ Price Action: At the time of writing, Block shares are trading 1.24% lower at $59.16, according to data from Benzinga Pro.
Image: Courtesy of Block
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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