Square Earnings Forecast Comes Up Short of High Expectations
- CFO says payments processor spending on products, growth
- Company raises guidance for annual sales, maintains on profit
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Square Inc. gave an earnings forecast for the current quarter and year that fell short of analysts’ high expectations, a rare miss for the company and a signal its spending on new products and growth are tempering profit.
The payment processor projected adjusted earnings per share of 8 cents to 10 cents in the current quarter, missing analysts’ average estimate of 13 cents. For the full year, Square repeated its previous forecast of 42 cents to 46 cents, compared with analysts’ average projection of 46 cents. The shares were little changed in extended trading after closing Wednesday at $66.86 in New York.