-=Square (SQ) reported earnings on Wed 7 Nov 2018 (a/h)

Square beats by $0.02, beats on revs; guides Q4 EPS below consensus, revs above consensus

Reports Q3 (Sep) earnings of $0.13 per share, excluding non-recurring items, $0.02 better thanthe S&P Capital IQ Consensus of $0.11; revenues rose 67.7% year/year to $431 mln vs the $414.19 mln S&P Capital IQ Consensus.

• Transaction-based revenue was $655 million in the third quarter of 2018, up 29% year over year. Transaction-based profit as a percentage of GPV was 1.07% in the third quarter of 2018, compared to 1.05% in the third quarter of 2017.
• Subscription and services-based revenue was $166 million in the third quarter of 2018, up 155% year over year. Subscription and services-based revenue excluding the acquisitions of Weebly and Zesty was $141 million, up 117% year over year.
• Hardware revenue in the third quarter of 2018 was $18 million, up 74% year over year, with continued growth from Square Register, Square Reader for contactless and chip, Square Stand, and third-party peripherals.

Co issues mixed guidancefor Q4, sees EPS of $0.12-0.13, excluding non-recurring items, vs. $0.15 S&P Capital IQ Consensus; sees Q4 revs of $446-451 mln vs. $438.54 mln S&P Capital IQ Consensus.