Block $SQ stock is bouncing off of lower trend channel wall support after the company reported an impressive revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... beat but an EPS miss.
On February 23, 2023, Block reported Q4 EPS of 22c versus the consensus estimate of 30c. The company reported Q4 revenue of $4.65B versus the consensus estimate of $4.60B.
The company said: “Over the last year, our ecosystem model helped drive resilience as we continued to serve a diverse base of global customers across a wide range of verticals, complementary products, and use cases. Looking ahead to 2023 and beyond, we are focused on balancing growth and efficiency and will prioritize speed, agility, and accountability. This framework will ensure we remain customer-led while building a disciplined and durable business for the long term.”
Block price target raised at Wolfe Research
Block’s price target was increased by Wolfe Research analyst Darrin Peller to $95 from $80 on February 24, 2023, while maintaining an Outperform rating on the stock. According to the analyst’s research note to investors, the company reported Q4 earnings above the Street on gross profit and adjusted EBITDA, and January and February trends in Cash App were strong. The model might be less sensitive to recessions, according to recent trends disclosed by the company, the firm claims.
Block price target raised at Wells Fargo
Following encouraging Q4 earnings results, Wells Fargo analyst Jeff Cantwell increased the price target for Block to $105 from $96 on February 24, 2023, while maintaining an Overweight rating on the shares. The analyst pointed out that Cash App Card was the primary factor in Block’s Cash App GP’s 64 percent growth. Additionally, Wells pointed out that Block’s $1.3B FY23 EBITDA guidance reflects a positive operating outlook.