Block Inc. (NYSE:XYZ) will release its financials for the second quarter after the closing bell on Wednesday. Here’s what to expect as the stock builds strong momentum ahead of the announcement.
In Focus: Earnings Estimates, Analyst Ratings
Analysts estimate the fintech company to report earnings of 79 cents per share, up 27% year-over-year, but down 7% from the previous quarter. Block is expected to report quarterly revenue of $6.50 billion, up 7.04% from the same quarter last year.
Block beat earnings expectations in the first quarter but missed on the top line.
The XYZ stock has a consensus “Buy” rating with an average price target of $88, implying a roughly 4% upside. Notably, five of the last six analyst ratings revised the price target upward.
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Can the Bulls Sustain Their Momentum?
Short interest dropped from 20.3 million shares in June to 15.9 million in July, representing 3.5% of the company’s total float. A declining short interest is typically interpreted as a bullish signal.
Meanwhile, the Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a "Buy" signal for XYZ, according to TradingView.
The Relative Strength Index indicated a “Neutral” stance, and the Bull Bear Power indicator similarly pointed to a balanced market.
The stock has rallied strongly over the short and medium term, posting an impressive 30% gain so far this year.
| Asset | 1-Month Gains +/- | Year-to-date Gains +/- | 1-Year Gains +/- |
|---|---|---|---|
| Block Inc (XYZ) | +7.25% | +30.54% | +12.42% |
‘Buzz’ Grows
The Jack Dorsey-led firm has placed a significant bet on Bitcoin’s utility as a medium of exchange, deploying Bitcoin payment capabilities within its Square point-of-sale system. The feature lets merchants accept BTC payments with no processing fees until 2027.
As of this writing, Block holds 9,032 BTC, worth $581 million, on its balance sheet, ranking as the 15th-largest corporate holder of the apex cryptocurrency, according to BitcoinTreasuries.net.
The firm also rolled out an updated version of its hardware Bitcoin (CRYPTO: BTC) wallet, BitKey, last quarter. It comes with a secure touchscreen and uses 2-of-3 multisig technology, eliminating seed phrases.
Lately, Block has piqued interest with the launch of Buzz, a new Slack-like platform where humans and AI agents work together in the same workspace.
Price Action: At the time of writing, BTC was exchanging hands at $61,237.57, up 3.42% in the last 24 hours, according to data from Benzinga Pro.
Block shares fell 0.63% in after-hours trading after closing 3.11% higher at $84.64 during Tuesday’s regular trading session.
XYZ stock shows a stronger price trend across short-, medium-, and long-term periods, according to Benzinga’s Edge Stock Rankings.
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