Why Square Stock Sank 23% in August
Shares of Square (NYSE: SQ) fell more than 20% last month, according to data provided by S&P Global Market Intelligence, following the release of the digital payments company's second-quarter results.
Square's second-quarter sales and profits actually came in above Wall Street's estimates. The company's adjusted revenue climbed 46% year over year to $563 million, while its adjusted earnings per share surged 62% to $0.21. Analysts had expected revenue and adjusted EPS of $557 million and $0.17, respectively.
However, investors appear to be focusing more on Square's guidance. For the third quarter, the company expects to deliver adjusted revenue of $590 million to $600 million and adjusted EPS of $0.18 and $0.20. The midpoints of these ranges are less than the $599 million in revenue and $0.22 in adjusted EPS analysts had forecast.
Source Fool.com
