Square Shares Climb After Third-quarter Earnings Beat
Shares of Square Inc. gained 1% in after-hours trade Tuesday after the company beat third-quarter earnings expectations. Square reported a net loss of $32 million, or a loss of 9 cents per share, compared to a loss of $54 million, or a loss of 35 cents per share, in the year-earlier period. The FactSet consensus was for an adjusted loss per share of 11 cents. It reported total net revenue of $439 million, which includes revenue from Starbucks, up from $332 million in the year-earlier period. It reported adjusted revenue, excluding Starbucks, of $178 million, above the FactSet consensus of $172.6 million. Square said the transition away from Starbucks is almost done and it expects to see "only nominal" contributions in the fourth quarter. Square raised its fourth-quarter and full-year estimates, saying it expected net revenue of $438 million to $443 million for the fourth-quarter and adjusted revenue of $182 million to $185 million. For 2016, it expects net revenue of $1.695 billion to $1.700 billion and adjusted net revenue of $677 million to $680 million. Year to date, shares of Square have fallen 15% compared to the S&P 500's gain of 3%.
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