Block’s Shares Surge 12% on Strong Q3 Results

Block (NYSE:SQ) shares soared more than 12% on Friday following the company’s reported Q3 results, with EPS of $0.42 coming in better than the Street estimate of $0.24. Revenue was $4.52 billion, in line with the Street estimate.

Cash App generated gross profit of $774 million, representing a 51% year-over-year growth. Square generated gross profit of $783 million, growing 29% year-over-year.

The strength in Cash App is expected to continue into Q4 with monetization rates and Cash App ARPU rising materially better than expectations.

Analysts at Deutsche Bank continue to believe Block’s proven business model will be able to weather the economic storm and demonstrate strong top and bottom-line growth rates well above peers in the short and long term.