What Boosted Square Stock Last Week

Square (SQ) stock rose ~11.5% to close at $54.73 last week (ended May 11). The stock has returned 178% in the last 12 months and 14.6% in the last month. It rose 154% in 2017. Square is trading 181% above its 52-week low of $19.45 and 6.4% below its 52-week high of $58.46.

Square reported non-GAAP (generally accepted accounting principles) revenue of $307 million in fiscal 1Q18, marking a 51% rise YoY (year-over-year). Its non-GAAP EPS (earnings per share) were $0.06. Its gross payment volume rose 31% YoY to $17.8 billion, while its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose 33% YoY to $36 million.

Analysts expected Square to post revenue of $293 million and EPS of $0.06 in 1Q18. While Square met earnings estimates, it beat revenue estimates by 4.5%.

In a letter to shareholders, Square stated that “we continue to accelerate growth at scale, expanding our ecosystem for sellers and individuals. In the first quarter of 2018, total net revenue was $669 million, up 45% year over year, and Adjusted Revenue was $307 million, up 51% year over year. This is an increase from the fourth quarter of 2017, when total net revenue and Adjusted Revenue grew 36% and 47%, respectively, year over year.” Peer payment companies PayPal (PYPL), MasterCard (MA), and Visa (V) have returned 59%, 63%, and 41%, respectively, in the last 12 months.