Shares of Block (SQ) are up 16% after the financial technology company issued third-quarter results that beat Wall Street expectations.
Block beat forecasts on both the top and bottom lines and demonstrated strong growth in its Cash App and Square revenue.
The company announced earnings per share (EPS) of $0.55 U.S. versus $0.47 U.S. that was expected among analysts.
Revenue in the period totaled $5.62 billion U.S. compared to $5.44 billion U.S. that was anticipated.
Block also raised its forward guidance, saying it now expects full-year operating income of $205 million U.S. to $225 million U.S., a big increase from previous guidance of $25 million U.S.
The company also said that it expects a 2023 gross profit of $7.44 billion U.S. to $7.46 billion U.S.
Block, which is a major holder of cryptocurrencies, said that its Bitcoin revenue in Q3 rose to $2.42 billion U.S. from $1.76 billion U.S. a year earlier.
On an earnings call, Block chief executive officer (CEO) Jack Dorsey said the company will focus on growing its payment app among restaurants and services businesses going forward.
Prior to today (Nov. 3), Block’s stock had declined 18% over the last 12 months to trade at $43.98 U.S. per share.