Square Stock Slides on Weak Q4 Outlook Despite Q3 Earnings Beat

SQ stock is down more than 4% after the bell

Square stock (NYSE:SQ) took a hit late in the day Wednesday as the online and mobile payment services provider posted an earnings beat, but its guidance for the current quarter is below what analysts are projecting.

Square StockThe company said that for its third quarter of fiscal 2018, it brought in adjusted earnings of 13 cents per share, coming in ahead of the 11 cents per share that analysts polled by Refinitiv were calling for. The company’s $20 million profit was its first quarterly profit, topping the $16 million loss from the year-ago quarter

Square added that its revenue for the period came in at $431 million on an adjusted basis, exceeding its year-ago sales by 68% compared to the year-ago quarter. The Wall Street consensus estimate called for revenue of $413.9 million, according to data compiled by Refinitiv.

As previously mentioned, Square stock fell due to the company’s fourth-quarter profit outlook, which is slated to fall in the range of 12 and 13 cents per share. Analysts see this figure as reaching 15 cents per share for the company’s holiday period.

SQ stock is down about 4% after the bell Wednesday as the payment services provider’s fourth-quarter outlook missed the mark. An encouraging earnings preview helped to lift shares nearly 7% during regular trading hours as the company geared up to report for the period.

Square stock has increased more than 120% year-over-year and about 136% year-to-date.

Article printed from InvestorPlace Media, https://investorplace.com/2018/11/square-stock-sq/.

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