Square (SQ) Releases FY18 Earnings Guidance

Marco Green
May 4, 2018

Square shares fell 6.4 percent to $45.55 after the report. That's consistent with the growth rate seen in the fourth quarter. As of Wednesday's close, the stock was up 159 percent over the past 12 months. BB&T Securities LLC lifted its holdings in Square by 16.6% during the 4th quarter. Finally, Global X Management Co.

"We maintain a Neutral rating post another beat and raise quarter, as on one hand, we command management's sounds strategy (monetization, network effect), while on the other hand, rich valuation keeps us on the sidelines", Wedbush analyst Moshe Katri said in a note to clients. Global X Management Co. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,180 shares of the technology company's stock worth $264,000 after buying an additional 2,428 shares during the last quarter. The shares were sold at an average price of $49.07, for a total transaction of $258,697.04. Following the completion of the transaction, the director now owns 468,223 shares of the company's stock, valued at $21,959,658.70. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.

In related news, CFO Sarah Friar sold 38,400 shares of the company's stock in a transaction that occurred on Wednesday, February 14th. The firm, which makes money by betting against overvalued stocks, has opened a short position on Square and has predicted its share price could fall by 30 percent. The disclosure for this sale can be found here. BB&T Securities LLC now owns 10,902 shares of the technology company's stock worth $377,000 after buying an additional 1,550 shares during the last quarter. Company insiders own 32.68% of the company's stock.

Shares of Square stock traded down $0.39 during trading hours on Thursday, reaching $48.27. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.83 and a quick ratio of 1.83. Square has a 1 year low of $19.18 and a 1 year high of $58.46. The company has a market cap of $19,104.36, a price-to-earnings ratio of -482.70 and a beta of 4.24.

Square (NYSE:SQ) released its earnings results on Tuesday.

Nonetheless, the $200,000 first-quarter profit margin suggests that both appetite and stability are there, despite coming amid overall lackluster performance targets which saw Square shares dip 6% May 2.

Square added that it projects that its second quarter will yield revenue in the range of $355 million to $360 million, better than the $334 million in revenue that Wall Street is calling for in its consensus estimate, per Thomson Reuters.

A year earlier, Square earned 5 cents a share on sales of $461.6 million. The company's quarterly revenue was up 50.5% on a year-over-year basis. sell-side analysts expect that Square, Inc. will post 0.02 earnings per share for the current year.

A number of equities analysts recently issued reports on the company. Zacks Investment Research upgraded Square from a "hold" rating to a "buy" rating and set a $51.00 target price for the company in a report on Tuesday, January 23rd. Stephens restated a "buy" rating and issued a $41.00 target price on shares of Square in a report on Wednesday, January 10th. Finally, Barclays reiterated a "buy" rating and issued a $43.00 price objective on shares of Square in a report on Friday, January 5th.

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