Block Inc. (NYSE: XYZ), the fintech giant behind Square and Cash App, is poised to release its fourth-quarter earnings report today amid heightened analyst optimism about its Bitcoin integration strategies and payment ecosystem growth. Shares dipped 1.6% pre-market to $82.67 ahead of the announcement but remain 28% higher over the past 12 months.
Earnings Expectations Show Robust Growth
Analysts project Q4 revenue of $6.29 billion, marking a 9% year-over-year increase, with earnings per share (EPS) expected to surge 95% to $0.88. This growth aligns with Block’s expanding Gross Payment Volume (GPV), which reached $62.49 billion in Q4 – a 4% YoY jump driven by Square’s POS solutions and Cash App’s cryptocurrency features. The company anticipates gross profit growth of 14% YoY to $2.31 billion.
Analyst Sentiment Remains Strong
Despite recent stock volatility, 30 of 37 analysts maintain “Buy” ratings, with price targets ranging up to $115:
| Firm | Rating | Price Target |
|---|---|---|
| RBC Capital | Outperform | $110 |
| Raymond James | Outperform | $115 |
| Citi | Buy | $108 |
The median price target of $108.50 suggests 31% upside potential from current levels. Analysts highlight Block’s partnerships with Lyft, Google Play, and SalonCentric as key growth drivers.
Bitcoin Strategy Takes Center Stage
With Bitcoin’s price rally renewing investor interest, Block’s cryptocurrency initiatives are under scrutiny:
- Cash App processed over $72 billion in Bitcoin transactions since acquiring Afterpay
- BNPL Gross Merchandise Volume grew 23% YoY to $8.24 billion
- New mining infrastructure projects expected to be detailed in earnings call
The company’s Bitcoin exposure could lead to valuation reassessment if regulatory clarity improves.
Technical Outlook Mixed Despite Fundamentals
The stock shows conflicting signals:
- Trading below 200-day moving average (-1.8% YTD)
- Supported by 100-day moving average at $83
- Options market pricing in 13.9% post-earnings move
A beat on both revenue and EPS could push shares toward $90 resistance, while guidance concerns might test $80 support.
