Block, Inc. (XYZ), headquartered in Oakland, California, is a financial technology company that builds ecosystems focused on commerce and financial products and services. Valued at a market capitalization of $40.1 billion, the company is set to announce its fiscal fourth quarter 2025 earnings in the near future.
Ahead of this event, analysts expect this fintech to post a profit of $0.26 per share, in line with the prior-year quarter. The company has surpassed Wall Street earnings estimates in two of the last four quarters, while missing them on two other occasions. Its earnings of $0.54 per share in the prior quarter fell short of expectations by 14.3%.
For the current fiscal year, which ends in December, analysts expect XYZ to post earnings of $0.84 per share, down 75.1% from $3.37 per share in fiscal 2024. However, its EPS is expected to recover and grow 98.8% year over year to $1.67 in fiscal 2026.
XYZ has declined 23.7% over the past 52 weeks, significantly underperforming both the 16.9% return of the S&P 500 Index ($SPX) and the 26.4% gain of the State Street Technology Select Sector SPDR ETF (XLK) over the same time period.
On November 6, Block reported weaker-than-expected third-quarter results, causing its shares to fall 7.7% in the following trading session. The company’s overall revenue rose 2.3% year over year to $6.1 billion, but missed analyst expectations by 3.6%. Additionally, its adjusted EPS also grew 1.9% from the prior-year quarter to $0.54, but fell 14.3% below consensus estimates.
Wall Street analysts are moderately bullish on XYZ stock, with an overall rating of “Moderate Buy.” Among the 42 analysts covering the stock, 25 recommend “Strong Buy”, four advise “Moderate Buy”, 11 indicate “Hold” and two suggest “Strong Sell” ratings. The average price target for XYZ is $83.27, indicating a potential upside of 26.3% from current levels.
On the date of publication, Neharika Jain had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com