Square is scheduled to report fourth-quarter earnings after the market close Wednesday.
Here's what Wall Street expects:
- Earnings: 13 cents per share, forecast by Refinitiv
- Revenue: $454 million, forecast by Refinitiv
The payment company announced it hired Amrita Ahuja as its new CFO in January. Wednesday marks her first earnings call in the position, filling former CFO Sarah Friar's void after she stepped down last year. Ahuja held the same position at Blizzard Entertainment, a division of Blizzard.
Last quarter , the San Francisco-based company run by Twitter CEO Jack Dorsey, beat analysts' expectations on earnings and revenue but came up slightly short on forward guidance. Subscription and services-based revenue was especially strong, up 155 percent year over year. Analysts are watching the same metric in fourth-quarter results.
"Subscription and services revenue is highly valued by investors and what has driven the upside to estimates through 2018 and what has driven the stock," Raymond James analyst John Davis said ahead of the report Wednesday. "Investors have cared less about margin expansion over the last year given the revenue upside."
Guggenheim Securities analyst Jeff Cantwell is also watching subscriptions and services, as well as any change in guidance for this fiscal year.
"We're expecting Square to beat consensus expectations on revenue for the quarter — beyond that we're expecting positive 2019 guidance," Cantwell said.
The stock has rallied 40 percent this year, and more than 70 percent year over year. Square shares were slightly higher ahead of the earnings announcement, trading near $78.95.
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