=Square (SQ) reported earnings on Wed 27 Feb 19 (a/h)

Square beats by $0.01, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY19 EPS above consensus, revs in-line

• Reports Q4 (Dec) earnings of $0.14 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $0.13; revenues rose 64.0% year/year to $464 mln vs the $453.88 mln S&P Capital IQ Consensus.
  • Transaction-based revenue was $668 million in the fourth quarter of 2018, up 27% year over year
  • Subscription and services-based revenue was $194 million in the fourth quarter of 2018, up 144% year over year
  • Hardware revenue in the fourth quarter of 2018 was $18 million, up 51% year over year, driven by Square Terminal, which commenced shipment in November 2018, as well as Square Register and third-party peripherals.
• Co issues guidance for Q1, sees EPS of $0.06-0.08, excluding non-recurring items, vs. $0.11 S&P Capital IQ Consensus; sees Q1 revs of $472-482 mln vs. $473.94 mln S&P Capital IQ Consensus.
• Co issues guidance for FY19, sees EPS of $0.74-0.78, excluding non-recurring items, vs. $0.71 S&P Capital IQ Consensus; sees FY19 revs of $2.22-2.25 bln vs. $2.25 bln S&P Capital IQ Consensus.