A Look Ahead: Block's Earnings Forecast
Block (NYSE:XYZ) is preparing to release its quarterly earnings on Thursday, 2025-08-07. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Block to report an earnings per share (EPS) of $0.47.
Anticipation surrounds Block's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings History Snapshot
Last quarter the company missed EPS by $0.31, which was followed by a 20.43% drop in the share price the next day.
Here's a look at Block's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.87 | 0.87 | 0.87 | 0.85 |
| EPS Actual | 0.56 | 0.71 | 0.88 | 0.93 |
| Price Change % | -20.0% | -18.0% | -1.0% | 1.0% |
Market Performance of Block's Stock
Shares of Block were trading at $75.29 as of August 05. Over the last 52-week period, shares are up 24.91%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analysts' Perspectives on Block
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Block.
The consensus rating for Block is Outperform, based on 18 analyst ratings. With an average one-year price target of $74.61, there's a potential 0.9% downside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Fidelity National Info, PayPal Holdings and Toast, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Fidelity National Info, with an average 1-year price target of $85.0, suggesting a potential 12.9% upside.
- Analysts currently favor an Outperform trajectory for PayPal Holdings, with an average 1-year price target of $84.56, suggesting a potential 12.31% upside.
- Analysts currently favor an Buy trajectory for Toast, with an average 1-year price target of $49.62, suggesting a potential 34.09% downside.
Comprehensive Peer Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for Fidelity National Info, PayPal Holdings and Toast, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Block | Outperform | -3.11% | $2.29B | 0.89% |
| Fidelity National Info | Neutral | 2.59% | $879M | 0.50% |
| PayPal Holdings | Outperform | 5.11% | $3.84B | 6.23% |
| Toast | Buy | 24.37% | $346M | 3.48% |
Key Takeaway:
Block is positioned at the bottom for Revenue Growth with a negative percentage, while its peers show positive growth rates. In terms of Gross Profit, Block's figure is the highest among its peers. However, Block's Return on Equity is the lowest compared to its peers, indicating lower profitability relative to shareholder equity. Overall, Block's performance is mixed when compared to its peers in these key financial metrics.
About Block
Founded in 2009, Block provides payment services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. In 2024, Square's payment volume was almost USD 250 million.
Understanding the Numbers: Block's Finances
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining Block's financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -3.11% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.29%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Block's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.89%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.52%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Block's debt-to-equity ratio is below the industry average at 0.28, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Block visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
