Square's Stock Falls On Weak Q1 Guidance

Square Inc SQ shares dropped in after-hours trading despite reporting a fourth-quarter sales beat.

The company reported earnings of 14 cents per share, falling in-line with consensus estimates. Sales came in at $464.25 million, beating estimates by $10.15 million.

Square issued first-quarter adjusted EPS guidance of 6-8 cents, below estimates of 11 cents, along with adjusted first-quarter sales of $472-$482 million versus a $473.8 million estimate.

Quarterly Highlights

• Total net revenue grew 51 percent year-over-year
• Adjusted EBITDA up 97 percent year-over-year
• Cash app had 15 million monthly customers in December

Square was down 5.5 percent at $75 per share in the after-hours session. The stock closed higher by 1.7 percent at $79.32 per share.

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