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.
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.
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