From Nasdaq: 2025-04-29 12:16:00

Block XYZ is scheduled to report its first-quarter 2025 results on April 30, with revenue estimated to grow by 3.81% year over year to $6.18 billion. Earnings are expected to be 88 cents per share, a 3.53% increase from the previous year. Analysts predict a 11.25% earnings surprise on average.

Key factors for XYZ’s Q1 earnings include a strong product portfolio driving up Gross Payment Volume (GPV) to $61.95 billion in Q4 2024, a 7.8% increase year over year. Cash App usage is expected to rise with the addition of Afterpay on the Cash App card. However, forex challenges and marketing investments may impact results.

XYZ shares have dropped 31% YTD, underperforming the sector and industry. Competition from companies like PayPal and Affirm, which have also seen share declines, contribute to XYZ’s underperformance. The challenging macroeconomic environment and higher tariffs are additional factors affecting XYZ’s stock performance.

Block’s comprehensive commerce ecosystem and strong partner base are driving growth. The Square ecosystem offers sellers a range of solutions, including the new Square POS app that integrates commerce and payment functionality. Partnerships with Google Play and Afterpay are expected to boost XYZ’s Gross Payment Volume.

While XYZ has strong long-term drivers, challenging economic conditions and consumer spending trends pose risks. Operating margin expansion may be lower in 2025 due to high investment levels. The stock is currently trading below the 50-day and 200-day moving averages, indicating a bearish trend.

Investors are advised to wait for a better entry point to accumulate XYZ stock, which currently holds a Zacks Rank #3 (Hold). The company’s strong portfolio offerings and expanding partner base are positives for the future. However, a stretched valuation and uncertain economic conditions make XYZ a riskier investment option.



Read more at Nasdaq: Should You Buy, Sell or Hold Block Stock Before Q1 Earnings?