Square (SQ) will report Q1 earnings this afternoon in a Shareholder Letter on its website (16:05 last quarter) with a conference call to follow at 5 PM ET.

Current Cap IQ consensus estimates Q1 adj. EPS of $0.05 (vs $0.05 last year) on revs of $293 mln (+44% Y/Y).

SQ guided for Q1 adj. EPS of $0.03-0.05 on revs of $290-295 mln

Last quarter, sales growth accelerated for the third straight quarter -- to 47%. Gross payment volume grew 31%.

The company guided Q1 and FY18 sales above estimates but the profit outlook disappointed. 

  1. FY18 guidance calls for adj. EPS of $0.43-0.47 on revs of $1.30-1.33 bln. 
  2. The Street expects FY18 EPS +67% to $0.45 with rev up 37% to $1.35 bln.

SQ has been on a tear, rising over 150% last year. 

The stock is not cheap. The payment disruptor has a $19 billion market cap and trades at ~100x earnings estimates, ~80x EBITDA and 14x sales estimates


Square beats by $0.01, beats on revs; guides Q2 EPS below consensus, revs above consensus; guides FY18 EPS in-line, revs above consensus


$SQ Sold $34.1B Bitcoin in Q1

Square spent $33.9 million to purchase the cryptocurrency. Adjusted revenue from bitcoin was just $200,000. Bitcoin sales are a hook to get users to use the cash app.

  • Reports Q1 (Mar) earnings of $0.06 per share, excluding non-recurring items, $0.01 better thanthe Capital IQ Consensus of $0.05; revenues rose 50.5% year/year to $307 mln vs the $293.07 mln Capital IQ Consensus.
    • Co processed $17.8 billion in GPV, up 31% year over year.
    • Adjusted Revenue in the first quarter of 2018 includes $0.2 million related to bitcoin.
  • Co issues mixed guidance for Q2, sees EPS of $0.09-0.11, excluding non-recurring items, vs. $0.12 Capital IQ Consensus Estimate; sees Q2 revs of $355-360 mln, excluding non-recurring items, vs. $334.56 mln Capital IQ Consensus Estimate. 
  • Co issues guidance for FY18, sees EPS of $0.44-0.48, excluding non-recurring items, vs. $0.45 Capital IQ Consensus Estimate; sees FY18 revs of $1.4-1.43 bln, excluding non-recurring items, vs. $1.35 bln Capital IQ Consensus Estimate.