Square Inc. reports better-than-expected earnings and revenue; but forecasts miss expectations

Square Inc. (NYSE:SQ) reported better-than-expected financial results Wednesday, but shares were slightly down in after-hours trading after the company’s third-quarter earnings forecast missed analyst expectations.

The payment processor reported adjusted earnings of US$0.13 cents a share, up 86% from a year ago, with revenue rising 60% to US$385 million.

A year earlier, Square earned US$0.07 cents a share on adjusted sales of US$240 million.

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Analysts had expected the company to report earnings of US$0.12 cents on sales of US$367.6 million for the period ended June 30.

Shares of Square dipped 1% in after-hours trading, to US$66.25, at one point dipping as much as 2.5%. However, they have nearly doubled this year.

The company said for the third quarter Square said it expects profit of US$0.09 cents. Analysts had projected adjusted earnings of US$0.13 cents a share. 

Square, run by Twitter Inc (NYSE:TWTR) co-founder Jack Dorsey, launched bitcoin trading in November for most users of its cash mobile payments app.

Costs rising

Square has been on an acquisition spree, and its costs have been continuing to rise. 

International expansion remains a focus for Square, which offers its products in the US, Canada, the U.K., Japan, and Australia.

More and more of Square’s revenue is coming from higher-margin services like loans, instant deposits, food delivery, and employee management software.

Story by ProactiveInvestors