Zacks: Brokerages Expect Square, Inc. (SQ) Will Announce Earnings of $0.12 Per Share

Wall Street brokerages expect Square, Inc. (NYSE:SQ) to report earnings per share (EPS) of $0.12 for the current quarter, according to Zacks. Five analysts have issued estimates for Square’s earnings, with estimates ranging from $0.11 to $0.15. Square reported earnings per share of ($0.04) during the same quarter last year, which suggests a positive year-over-year growth rate of 400%. The company is expected to announce its next earnings report after the market closes on Wednesday, August 1st.

On average, analysts expect that Square will report full year earnings of $0.47 per share for the current fiscal year, with EPS estimates ranging from $0.44 to $0.54. For the next financial year, analysts expect that the company will post earnings of $0.79 per share, with EPS estimates ranging from $0.70 to $0.92. Zacks Investment Research’s earnings per share averages are an average based on a survey of sell-side research analysts that that provide coverage for Square.

Square (NYSE:SQ) last announced its quarterly earnings results on Wednesday, May 2nd. The technology company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.01. Square had a negative net margin of 2.96% and a negative return on equity of 7.03%. The firm had revenue of $307.00 million during the quarter, compared to analysts’ expectations of $293.07 million. During the same quarter in the prior year, the company earned $0.05 EPS. The company’s revenue was up 50.5% compared to the same quarter last year.

Several equities research analysts have recently weighed in on the stock. SunTrust Banks upped their price target on shares of Square from $45.00 to $66.00 and gave the stock a “hold” rating in a research report on Friday, June 29th. Citigroup upped their price target on shares of Square from $47.00 to $67.00 and gave the stock a “neutral” rating in a research report on Thursday, June 28th. Zacks Investment Research cut shares of Square from a “hold” rating to a “sell” rating in a research report on Tuesday, July 3rd. KeyCorp reaffirmed an “overweight” rating and issued a $70.00 price target (up previously from $55.00) on shares of Square in a research report on Tuesday, June 19th. Finally, Piper Jaffray Companies upped their price target on shares of Square to $63.00 and gave the stock a “neutral” rating in a research report on Tuesday. Four equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and eighteen have given a buy rating to the company. Square has an average rating of “Hold” and a consensus target price of $54.40.

Shares of SQ traded up $0.57 during mid-day trading on Wednesday, hitting $65.33. The company’s stock had a trading volume of 5,845,580 shares, compared to its average volume of 12,980,481. Square has a 52-week low of $24.22 and a 52-week high of $69.40. The stock has a market capitalization of $26.64 billion, a PE ratio of -653.30 and a beta of 4.32. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.76 and a current ratio of 1.76.

In other Square news, insider Jacqueline D. Reses sold 15,000 shares of the company’s stock in a transaction that occurred on Monday, July 2nd. The shares were sold at an average price of $62.34, for a total transaction of $935,100.00. Following the transaction, the insider now owns 559,200 shares in the company, valued at approximately $34,860,528. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James Morgan Jr. Mckelvey sold 400,000 shares of the company’s stock in a transaction that occurred on Monday, April 16th. The shares were sold at an average price of $46.90, for a total transaction of $18,760,000.00. Following the transaction, the director now owns 468,223 shares in the company, valued at approximately $21,959,658.70. The disclosure for this sale can be found here. Insiders have sold a total of 1,650,315 shares of company stock worth $94,582,456 in the last 90 days. 27.99% of the stock is currently owned by company insiders.

Several large investors have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Holdings Inc. increased its stake in shares of Square by 20.9% in the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 4,347,685 shares of the technology company’s stock worth $213,906,000 after acquiring an additional 752,364 shares during the period. Whale Rock Capital Management LLC acquired a new stake in shares of Square in the first quarter worth $180,818,000. State Treasurer State of Michigan increased its stake in shares of Square by 82.2% in the first quarter. State Treasurer State of Michigan now owns 2,540,500 shares of the technology company’s stock worth $124,993,000 after acquiring an additional 1,146,219 shares during the period. Geode Capital Management LLC increased its stake in shares of Square by 9.1% in the fourth quarter. Geode Capital Management LLC now owns 2,147,173 shares of the technology company’s stock worth $74,398,000 after acquiring an additional 179,830 shares during the period. Finally, Nomura Asset Management Co. Ltd. increased its stake in shares of Square by 22.1% in the first quarter. Nomura Asset Management Co. Ltd. now owns 1,831,500 shares of the technology company’s stock worth $90,110,000 after acquiring an additional 331,300 shares during the period. Hedge funds and other institutional investors own 52.14% of the company’s stock.

Square Company Profile

Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.

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Earnings History and Estimates for Square (NYSE:SQ)

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