Square Inc (SQ) released its second quarter results on Monday, August 2, 2021. The company reported net earnings of $0.39 per share for the second quarter ending June 30, 2021. Earnings for this past quarter were up 1596 percent compared to the same period a year ago.
Square, Inc. was founded in 2009 and is headquartered in San Francisco, California. Square, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments; also provide reporting and analytics, and next-day settlement. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Register that combines its hardware, point-of-sale software, and payments technology; Square Terminal, a payments device and receipt printer to replace traditional keypad terminals, which accepts tap, dip, and swipe payments.
Square's revenue increased 171 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins decreased to 24.93% for the second quarter compared to the same period in the previous year, and operating margins increased to 4.98% over the same period. Net earnings for past trailing twelve months were $573.5 million, up 89% from the prior year.
Moving on to the balance sheet, Square's cash levels jumped 131% for the second quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, increased 14.37% this past year. The current ratio for Square now stands at 1.95. The company increased shares outstanding by 3.49%.
Shares of SQ are currently trading around $272.38. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 241.41 and price to book ratio of 52.94.
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This article was written by Value Investing News (https://www.valueinvestingnews.com) on Tuesday, August 3, 2021.