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Will Toast's Product Innovation Drive Profits Despite Cost Headwinds?
ZACKS· 2025-08-22 16:11
Key Takeaways Toast unveiled the Toast Go 3 handheld with a 24-hour battery and built-in cellular connectivity.AI engine ToastIQ powers upsells, marketing tools and workflow automation for restaurants.Toast raised 2025 gross profit and EBITDA guidance, but rising costs and tariffs may hurt margins.Toast, Inc.’s (TOST) recent product launches and robust expansion moves suggest it is positioning itself for stronger profitability. The company’s latest launch is the Toast Go 3 handheld, which uses ToastIQ with ...
Should You Buy, Sell or Hold Block Stock Before Q1 Earnings?
ZACKS· 2025-04-29 17:20
Core Viewpoint - Block is expected to report first-quarter 2025 results on April 30, with revenue estimates of $6.18 billion, reflecting a year-over-year growth of 3.81% and earnings per share (EPS) of 88 cents, indicating a 3.53% increase from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate indicates that Block's earnings have beaten expectations in two of the last four quarters, with an average earnings surprise of 11.25% [2]. - Gross Payment Volume (GPV) for Block reached $61.95 billion in Q4 2024, marking a 7.8% year-over-year increase, driven by strong performance in the Square ecosystem [3]. - Gross profit is anticipated to grow 11% year-over-year to $2.32 billion, with adjusted operating income expected at $430 million and an adjusted operating margin of 19% [4]. Market Conditions - Block shares have declined 31% year-to-date, underperforming the Zacks Computer & Technology sector's decline of 11.1% and the Zacks Internet Software industry's fall of 6.2% [6]. - The company faces challenges from a difficult macroeconomic environment, including the risk of recession due to higher tariffs [6]. Competitive Position - Block's stock is currently trading at a Price/Cash Flow ratio of 21.84X, which is higher than the sector average of 18.75X and competitors like PayPal at 8.84X [10]. - The company is expanding its product offerings, including a new Square POS app that integrates various functionalities for different industries [14][15]. Strategic Initiatives - Cash App's partnership with Google Play enhances its payment options, and the Afterpay division has seen significant consumer engagement, with over $72 billion spent since its acquisition [16]. - Block's comprehensive commerce ecosystem supports sellers by combining software, hardware, and payment services, which is expected to sustain momentum [13]. Investment Outlook - Despite strong product offerings and a growing partner base, challenging macroeconomic conditions and sluggish consumer spending trends raise concerns [18]. - Block's shares are currently trading below their 50-day and 200-day moving averages, indicating a bearish trend [18].