Block Shares Jump 4% After Beating Earnings Expectations

Block's shares surged over 4% in late trading after the company released second-quarter earnings that surpassed Wall Street forecasts. The payments giant reported an adjusted profit of $1.02 per share, exceeding analysts' estimates of 87 cents per share.

The quarterly income reached $6.62 billion, beating expectations of around $6.49 billion from analysts. Block also raised its full-year target for gross profit to $12.51 billion, representing a 21% growth from the previous year.

Cash App's bitcoin revenue was a significant contributor to the company's success, with a 31% increase in gross profit from the same quarter last year. The Square seller business posted a 13% increase in gross profit, while Block as a whole saw a 25% year-over-year growth in gross profit.

The company also reported a 27% adjusted operating income margin, its highest level to date. Adjusted diluted earnings per share increased by 65% from the previous year and reached a record $1.02.