News
James B. Bell
- August 05, 2023
Written by Stuart Condie
SYDNEY--Block's Australia-listed securities have experienced an 11% slump early on Friday, as the payment technology provider faces a slowdown in gross profit growth during the start of 3Q.
Stock Performance
The stock has emerged as the worst performer in the S&P/ASX 200, roughly 90 minutes into the trading session.
Strong 2Q Earnings
In a report released late Thursday, Block announced stronger-than-expected earnings for the second quarter and raised its full-year outlook. However, it also highlighted that gross profit growth is likely to have slowed to an annual rate of 21% in July.
- Gross profit for 2Q increased by 27% year-on-year, reaching US$1.87 billion. This surpassed the average analyst forecast of US$1.81 billion (according to FactSet data).
- The net loss shrunk from US$209.3 million to US$125.8 million compared to the previous year.
Impact on Australia-Listed Shares
Shares listed on the Australian market, a result of Block's acquisition of local buy-now-pay-later provider Afterpay in 2021, are currently valued at 103.84 Australian dollars (US$68.03). If this trend continues, it could result in the shares experiencing their lowest closing price in nearly four weeks.
PREVIOUS POST
Banco Bradesco's Profit Declines in Q2
NEXT POST
Stock Futures in the U.S.
Related Articles
General Motors Secures $6 Billion Credit Agreement Amidst UAW Strike
GM secures a $6 billion credit agreement amidst the UAW strike. Quarterly results will be reported soon. Ford and Stellantis also affected by the strike.
Broker Accused of Unregistered Payments
Finra accuses a California broker of making unregistered commission payments and seeks penalties for violations.
Epwin Group Expects Rise in First-Half Revenue
Epwin Group expects an increase in first-half revenue and is optimistic about meeting the market's full-year outlook. Despite short-term headwinds, the company...