SQ reports earnings after market close on May 5th, 2022 with an estimate of 0.21 EPS.

SQ historically beats earnings 80% of the time, with an average beat of 16.09%. Their last earnings release came on Feb 23rd, 2022, where they were expected to report an EPS of $0.22. SQ beat this EPS estimate by $0.05 (23%) , as they reported an EPS of $0.27 for the quarter.

SQ Retail Investor Sentiment

Taking a look at Twitter and Stocktwits we can get a sense of the market sentiment for SQ. Right now the market sentiment for SQ is -0.93% on Twitter and -1.88% on Stocktwits. Overall this is a generally positive sentiment going into earnings.

SQ is currently averaging about 444 posts per day I'll touch on why this is important, but for now, here is a breakdown for the last 72hrs: 36 somewhat large Twitter accounts 10,000+ followers, 1 large Twitter accounts with 100k+ followers 0 very large accounts with 500k+ followers.

A somewhat negative sentiment trend across social media, and I will need to dive into some of the tweets going into earnings to get a better sense.

Recent Fund Sales of SQ Holdings

TYBOURNE CAPITAL MANAGEMENT (HK) LTD decreases $SQ Holdings

On 2022-03-31 TYBOURNE CAPITAL MANAGEMENT (HK) LTD changed its ownership of SQ from 903.25k to 625.9k. The current market value for these shares is 84.87M. As of May 3rd, 2022 SQ represents 5.02% of their total portfolio.

Let's take a closer look at TYBOURNE CAPITAL MANAGEMENT (HK) LTD to see how they've performed as a whole. Here are their returns

1-year return -30.2%.
3-year return 102.83%.
Return Since inception 645.63%.

This fund has performed well since inception but hasn't been great in selecting stocks this year. They essentially liquidated 30% of their SQ holdings, which is a significant amount, especially when it makes up 5% of their portfolio holding.

Block, Inc. Analyst Ratings

Credit Suisse Maintains Buy for SQ. Credit Suisse released their rating for SQ. As of Apr 24th, 2022 Credit Suisse rates SQ as a buy, compared to their previous rating of buy for SQ
Wells Fargo Upgrades SQ to buy. Wells Fargo released their rating for SQ. As of Apr 4th, 2022 Wells Fargo rates SQ as a buy, compared to their previous rating of hold for SQ.
Stephens & Co. maintains hold. Stephens & Co. released their rating for SQ. As of Apr 5th, 2022 Stephens & Co. rates SQ as a hold, compared to their previous rating of hold for SQ.

Here is the current analyst rating distribution for SQ. In total there are 38 SQ analyst ratings.

35 Buys
3 Holds
0 Sells

Essentially, analysts, are either maintaining buy or hold, or have upgraded SQ to a buy for the months leading up to earnings.

SQ Earnings Preview Final Thoughts

The Good --> Analysts are still bullish on SQ

The Bad --> Large fund is selling SQ going into earnings, however, this fund's track record isn't great so they could be making a mistake disposing of these shares

Final Prediction --> We see SQ beat earnings. This is also a solid buy or hold, based on analyst ratings.