Square Guidance On Earnings Light, Revenue In Line; Stock Falls

Square Guidance On Earnings Light, Revenue In Line; Stock Falls

Square ‘s ( SQ ) light guidance for the December quarter spurred some investors to take profits after a big run-up in 2017.

Shares in the digital payments processor fell 3.4% to 35.45 in after-hours trading on the stock market today .

Square said Wednesday that adjusted third-quarter earnings were 7 cents a share, up six-fold from a year ago, with net revenue rising 33% to $585 million, topping consensus estimates. A year earlier, Square earned one cent a share on net revenue of $439 million. Analysts expected Square to report earnings of 6 cents on sales of $574 million for the period ended Sept. 30.

For the December quarter, Square forecast adjusted earnings from 5 cents to 6 cents a share and revenue of $590 million at its midpoint of guidance vs. Zacks Research estimates of 7-cent profit and $588 million in revenue.

As of Wednesday’s regular session, Square stock had shot up 165% in 2017.

San Francisco-based Square makes credit-card readers that plug into mobile phones and tablets. While Square’s primary customers are small businesses, it’s attracting bigger customers, analysts say. Square has expanded into providing financing and bank loans to small businesses.

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