KeyBanc analyst Josh Beck believes the earnings report could be viewed as mixed
Block (SQ) is scheduled to report results of its fourth fiscal quarter after the market close on February 24, with a conference call scheduled for 5:00 pm EDT. What to watch for:
1. REPORT COULD BE VIEWED AS MIXED: KeyBanc analyst Josh Beck lowered the firm’s price target on Block to $175 from $225 and kept an Overweight rating on the shares ahead of quarterly results. The analyst believes the report overall could be viewed as mixed as he sees Block in the early stages of a third major company evolution toward connecting the consumer and merchant ecosystems across offline and online channels on a global basis. Mixed trends include tough first quarter Cash App comparisons following last year’s stimulus in which his firm’s Key First Look data indicates flattish quarter-to-date trends and prospects for the dilutive EBITDA impact of Afterpay.
On the positive side, Cash App was a clear standout in the recent KBCM FinTech Consumer survey, earning top marks across “Buy Now, Pay Later,” crypto/stock trading, checking consideration, and overall engagement, while it has retained a #1 or #2 finance ranking within the app store, supporting his long-term conviction.
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