Shares of Block (NYSE:SQ) gained in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at $0.40, which beat analysts’ consensus estimate of $0.35 per share.
Sales increased by 26% year-over-year, with revenue hitting $4.99 billion. This beat analysts’ expectations of $4.6 billion. Further, revenue derived from transactions was up 15% against this time last year. Revenue from services or subscriptions, meanwhile, was up a hefty 42%.
One major point that will likely come up during the upcoming earnings call is issues of trust in Block accounts. A Hindenburg Research report from March suggested that a “large percentage” of Block’s Cash App accounts were in some way suspect. Following that report, Block itself offered a report noting that around 44 million of its 51 million transacting profiles had been verified.
Overall, Wall Street has a consensus price target of $96.56 on Block stock, implying 60.43% upside potential, as indicated by the graphic above.
