Square’s 1Q Results Top Estimates; Street Sees 27% Upside

Square (SQ) posted total net revenues of $5.06 billion in 1Q, a jump of 266% year-on-year. Excluding revenue from bitcoin, total net revenue was $1.55 billion, an increase of 44% Read More... The post Square’s 1Q Results Top Estimates; Street Sees 27% Upside appeared first on TipRanks Financial Blog.

Square’s 1Q Results Top Estimates; Street Sees 27% Upside

Square (SQ) posted total net revenues of $5.06 billion in 1Q, a jump of 266% year-on-year. Excluding revenue from bitcoin, total net revenue was $1.55 billion, an increase of 44% year-on-year. Analysts had forecast revenues of $3.3 billion.

Square reported adjusted net income of $0.41 per share topping analysts’ estimate of $0.17 per share.

The company stated its reasons for deducting bitcoin revenue from total revenues in its shareholder letter. “We deduct bitcoin revenue because our role is to facilitate customers’ access to bitcoin. When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control.”

The company’s investment in bitcoin has paid off handsomely as bitcoin revenues made up 69.4% of total revenues in 1Q. Square has invested $220 million in Bitcoin so far. Transaction-based revenues were up 27% year-on-year to $960 million and made up 18.9% of the company’s total revenues.

Square reported gross payment volumes (GPV) of $33.1 billion, a growth of 29% year-on-year, and adjusted EBITDA of $236 million, up 85% year-on-year in 1Q. Gross profit from the company’s cash app popped 171% year-on-year to $495 million. (See Square stock analysis on TipRanks)

Following the earnings, BTIG analyst Mark Palmer reiterated a Buy and a price target of $295 (31.7% upside) on the stock. Palmer noted, “We believe the acceleration of the growth of SQ's Cash App amidst the COVID-19 pandemic has been a game-changer for the company by dramatically expanding its user base and becoming the means through which many unbanked and underbanked consumers receive government transfer payments and transact."

"At the same time, the company's Seller ecosystem has recovered faster than expected from the impact of the pandemic and its prospects for international growth are promising,” Palmer added.

Overall, consensus among analysts is a Moderate Buy based on 20 Buys, 9 Holds, and 3 Sells. The average analyst price target of $284.62 indicates upside potential of 27.1% from current levels.

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The post Square’s 1Q Results Top Estimates; Street Sees 27% Upside appeared first on TipRanks Financial Blog.

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Identiv Posts Smaller-Than-Feared Quarterly Loss As Sales Outperform; Shares Pop 9%

Shares of Identiv (INVE) surged 9.2% in Thursday’s extended trading session after the security technology company reported a smaller-than-expected loss in the first quarter. Moreover, sales surged 22% year-over-year, driven Read More... The post Identiv Posts Smaller-Than-Feared Quarterly Loss As Sales Outperform; Shares Pop 9% appeared first on TipRanks Financial Blog.

Identiv Posts Smaller-Than-Feared Quarterly Loss As Sales Outperform; Shares Pop 9%

Shares of Identiv (INVE) surged 9.2% in Thursday’s extended trading session after the security technology company reported a smaller-than-expected loss in the first quarter. Moreover, sales surged 22% year-over-year, driven by a rise in RFID revenue (up 59%).

Identiv incurred a loss of $0.09 per share in 1Q, compared to the $0.10 loss per share estimated by analysts. A loss of $0.13 per share was reported in the same quarter last year. Revenue generated in the quarter was $22.2 million, which came in ahead of analysts’ expectations of $21.91 million.

Revenues in the Identity segment jumped 38% on a year-over-year basis to $13.7 million, while Premises segment revenue grew 3% to $8.5 million. Additionally, operating expenses, including research and development, sales and marketing, and general and administrative were $8.9 million, down 4.3%. (See Identiv stock analysis on TipRanks)

Identiv CEO Steven Humphreys said, “We made solid progress on each of our primary areas of focus – growing our RFID business and position as an industry leader, capitalizing on the strength of the federal market, and driving recurring revenues and customer retention to increase our predictability – all of which have put us on track to hit our growth projections with potential upsides in the near-term and second half of the year.”

“The financial results of the first quarter, and our progress subsequent to its end, have positioned us not only to grow revenues 20% – 25% in the first half of 2021 but to continue building efficiently throughout the year,” said Identiv’s CFO Sandra Wallach.

Following the 1Q results, Northland Securities analyst Michael Latimore maintained a Buy rating. Latimore increased the stock’s price target to $19 (33.8% upside potential) from $14 “given the strong visibility and potential for outsized wins and accelerants”.

The analyst commented, “The diverse and growing portfolio of RFID opportunities and a likely rebound in premises with reopenings, gives us confidence in growth. There are a few deals that alone could produce more RFID volume than that in all of 2020. Wins this year could produce 4Q revenue and lead to further acceleration in 2022.”

Identiv shares have skyrocketed almost 378% in the past year, while the stock still scores a Strong Buy consensus rating based on 3 unanimous Buys. That’s alongside an average analyst price target of $19, which implies 33.8% upside potential to current levels.

Furthermore, Identiv scores an 8 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Related News:
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Apple’s 2Q Sales Pop 54% As Services and Mac Revenue Booms; Shares Gain After-Hours

The post Identiv Posts Smaller-Than-Feared Quarterly Loss As Sales Outperform; Shares Pop 9% appeared first on TipRanks Financial Blog.

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