Block earnings outlook: Jack Dorsey’s Block outlook tops earnings estimates, boosting shares 12%

The company expects adjusted core earnings between $570 million and $590 million for the three months ended March 31, compared with analysts’ average expectation of $511.76 million, according to LSEG data.

Block also raised its full-year profit guidance by more than $200 million, forecasting 2024 earnings of at least $2.63 billion, or at least 15% growth from the previous year.

A robust holiday season has put consumer spending on a stronger path heading into 2024 as Americans put aside worries of an economic slowdown to keep shopping, dining out and traveling.

Meanwhile, Block has been looking to lower costs and drive “profitable growth” in the business by cutting jobs and reducing its real estate footprint. The company has previously said it expects significant improvement in operating margins this year as these measures bear fruit.

Total net revenue rose 24% to $5.77 billion in the fourth quarter. Excluding bitcoin, revenue came in at $3.25 billion, up 15% compared to a year earlier.

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“We’ve done a lot recently to reduce our costs. Now we’re going to focus on growth,” CEO Jack Dorsey wrote in a letter to shareholders, noting that Block is below its cap of 12,000 employees and intends to stay that way “until we feel it’s holding us back.” Net loss in the quarter came in at $0.02 cents per share, in line with analyst expectations.

Earlier this month, larger rival PayPal had forecast flat growth in adjusted profit for the current year as it seeks to turn leaner, drive profitable growth and ease pressure on its shares.

The company expects adjusted core earnings between $570 million and $590 million for the three months ended March 31, compared with analysts’ average expectation of $511.76 million, according to LSEG data.

Block also raised its full-year profit guidance by more than $200 million, forecasting 2024 earnings of at least $2.63 billion, or at least 15% growth from the previous year.

A robust holiday season has put consumer spending on a stronger path heading into 2024 as Americans put aside worries of an economic slowdown to keep shopping, dining out and traveling.

Meanwhile, Block has been looking to lower costs and drive “profitable growth” in the business by cutting jobs and reducing its real estate footprint. The company has previously said it expects significant improvement in operating margins this year as these measures bear fruit.

Total net revenue rose 24% to $5.77 billion in the fourth quarter. Excluding bitcoin, revenue came in at $3.25 billion, up 15% compared to a year earlier.

Discover the stories of your interest

“We’ve done a lot recently to reduce our costs. Now we’re going to focus on growth,” CEO Jack Dorsey wrote in a letter to shareholders, noting that Block is below its cap of 12,000 employees and intends to stay that way “until we feel it’s holding us back.” Net loss in the quarter came in at $0.02 cents per share, in line with analyst expectations.

Earlier this month, larger rival PayPal had forecast flat growth in adjusted profit for the current year as it seeks to turn leaner, drive profitable growth and ease pressure on its shares.