Block shares plunge 17%, head for worst day in 5 years after earnings miss

Block shares plunged 16% on Friday and headed for their steepest drop since 2020 after the company reported fourth-quarter earnings that missed estimates and issued guidance for 2025 that failed to reassure investors. In its financial report late Thursday, Block reported earnings of 71 cents per share, falling short of the average analyst estimate of 87 cents, according to LSEG. Revenue of $6.03 billion also missed expectations of $6.29 billion. The company posted $2.31 billion in gross profit for the quarter, a 14% increase year-over-year, but slightly below consensus estimates. Competition is stiffening in the market for payments systems to small and medium-sized businesses. Analysts at Morgan Stanley noted that Square continues to lose market share to Toast , Fiserv's Clover and Shift4 . Analysts also pointed to the flattening user growth at Cash App as a concern. Block reiterated its full-year 2025 outlook of at least 15% gross profit growth. Square's payment volume increased n ... Read full article.