Block, Inc. XYZ stock is trading lower on Friday after the company reported worse-than-expected fourth-quarter financial results.

What To Know: Block reported adjusted earnings per share of 71 cents, missing analysts’ estimate of 87 cents. Furthermore, the company reported sales of $6.03 billion, missing analysts’ estimate of $6.29 billion.

Block reported a quarterly gross profit of $2.31 billion, with Cash App contributing $1.38 billion and Square contributing $924 million. Cash App's gross profit increased 16% year-over-year, while Square's gross profit grew by 12%.

The company set several product goals for 2025 and beyond, including enhancing global economic access, fostering openness to build trust and maximize customer flexibility and increasing automation to resolve mechanical issues that hinder creativity.

“Our number one initiative on our strategic roadmap to get all of this done is to invest heavily in building applied AI tools to remove the toil of mechanical tasks for both ourselves across our entire business and for our customers across all of our product surfaces,” said CEO Jack Dorsey in a letter to shareholders.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Keefe, Bruyette & Woods analyst Vasundhara Govil maintained a Market Perform rating on and lowered the price target from $100 to $87.
• Needham analyst Mayank Tandon reiterated a Buy rating on Block and maintained a $90 price target.

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XYZ Price Action: At the time of writing, Block shares are trading 15.7% lower at $69.97, according to data from Benzinga Pro.

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