Block Targets Mid-Teens Gross Profit Growth Through 2028

Benzinga

Block projected mid-teens annual gross profit growth through 2028 and said it expects to reach roughly $15.8B in gross profit. Despite strong benchmarks, Wall Street skepticism has pushed the stock down more than 30% this year. The company forecast ~30% annual growth in adjusted operating income to $4.6B+ by 2028 and guided adjusted EPS to rise in the low-30% range to $5.50. Block also introduced a new non-GAAP cash-flow metric tied to its lending business and expects it to top $4B, or 25% of gross profit, by 2028. Shares were briefly halted during the presentation before jumping 9% once trading reopened.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Block forecasts mid-teens annual growth's profit margin growth for 2028

00:06and its first investor day since 2022.

00:09It's said profit will reach about $15.8 billion, according to CNBC.

00:14Wall Street's skepticism has dragged Block's stock down more than 30% this year,

00:17even as major indexes have pushed its strong gains.

00:20Block expects adjusted operating income to grow about 30% annually

00:23to more than $4.6 billion by 2028.

00:26The adjusted EPS rising in the low 30% range to $5.50.

00:31Block introduced a new non-gap cash flow metric tied to lending growth

00:35and expects it to exceed $4 billion for 25% of gross profit by 2028.

00:41Shares were briefly halted during the announcement for a rising 9% once trading resumed.

00:45For all things money, visit Benzinga.com.

Category

Transcript

Comments

Recommended