Crypto News– Block, Inc., a fintech firm, exceeded revenue and earnings expectations set by Wall Street analysts for the first quarter, causing its shares to surge in after-hours trading.
After-Hours Rally: Block Shares Soar on Strong Q1 Results
In its Q1 2024 earnings report released on May 2, Block revealed revenues of $5.96 billion, surpassing the $5.75 billion estimate provided by analytics firm Zacks by 3.54%. Moreover, Block reported earnings per share of $0.85, which exceeded Zacks’ estimate of $0.62 per share. The company’s Q1 gross profits reached $2.09 billion, marking a 22% increase from the same quarter last year. Block also announced a net income of $472 million.
In the first quarter, Block’s mobile payments and crypto platform, Cash App, generated $1.26 billion in gross profits, marking a 25% increase compared to the previous year. Additionally, the platform’s revenue surged by 23% to $4.17 billion from the same quarter last year.
Looking ahead, Block raised its second-quarter gross profit outlook to $2.185 billion, slightly higher than its previous projection of $2.165 billion. The company also revised its EBITDA forecast to $690 million, up from $670 million.
On May 2, shares of Block, Inc. (SQ) closed up 5.1% at $70.30, and in after-hours trading, they soared by 6.8% to $74.90, according to Google Finance.
Despite its recent success, Block has faced challenges this year, with its share price declining by 2.6% year-to-date. The stock dropped from approximately $73 to $66 earlier in the week following reports from NBC News. These reports stated that United States prosecutors were investigating the firm after a whistleblower raised concerns about its Square and Cash App businesses allegedly processing transactions for terrorist groups and users in sanctioned countries.
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