- Square is expected to report third-quarter results after Wednesday’s closing bell.
- Shares rallied as much as 7% amid broad strength following the 2018 midterm elections.
- In October, CFO Sarah Friar unexpectedly announced her departure, sending shares down as much as 32% from their recent high set in late September.
- Watch Square trade live.
Square, a mobile-payment provider, is expected to report third-quarter results after Wednesday’s closing bell.
Here are what analysts are expecting, according to Bloomberg data:
- Adjusted earnings per share: $0.11
- Revenue: $414.1 million
Square’s stock jumped as much as 7% before the earnings results, amid broad stock-market strength that came in the wake of the 2018 midterm electionsshifting the balance of power in Washington. And while shares were strong on Wednesday, they had been under pressure as of late.
Square faced a huge selling in mid-October, down as much as 32% from their September peak, after CFO Sarah Friar unexpectedly announced her departure. Shares have recovered, but remain 17% below their September high.
“As SQ has come back, our sense that previously frustrated shorts who had abandoned their positions have been re-emboldened, crowding negative positioning,” Morgan Stanley analyst James Faucette said in a note sent out to clients on Tuesday.
“At the same time, we think a lot of institutions that own the name have let the stock run well past their respective internal price targets, and are hoping for one last squeeze before fading the position. All the ingredients for volatility are there, especially with a healthy mix of retail thrown into the mix.”
Source: Business Insider
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