Square stock after the payments company lowers the forecast for the second quarter

Square's shares fell after the company announced a lower than expected volume of gross payments and lowered its guidance for the next quarter.

The payment processing center beat badysts' estimates of profits and revenues. This is how the company performed in the first quarter compared to what Wall Street was waiting for:

• Adjusted result: 11 cents per share against 8 cents per share, expected by Refinitiv
• Adjusted revenues: $ 489 million versus $ 478 million, forecast by Refinitiv

The volume of gross payments is $ 22.6 billion, compared to $ 22.8 billion anticipated by badysts. Profit forecasts for the second quarter have also been very clear, with the company forecasting between 14 and 16 cents per share and a turnover of between 545 and 555 million dollars, two figures lower than forecast.

In the first quarter of this year, net business turnover grew 43% over the previous year, while adjusted business figure increased by 59% over the same period period, announced the company. On a full year-over-year basis, the company raised its adjusted revenue guidance to $ 2.25 billion to $ 2.28 billion.

The shares of the place fell by 8% in exchanges after hours. The stock is up more than 25% so far. Over the past year, the stock has risen by more than 50%.

Headquartered in San Francisco, Square, led by Twitter CEO Jack Dorsey, is well known in the payments industry for his credit card processor, payment hardware and his famous Cash app. The gross payment volume (GPV) of the Cash application has increased by about 150% compared to the previous year.

Square's subscription and service revenues were $ 219 million for the first quarter, an increase of 126% over the previous year. The company said growth was driven by Cash App, Caviar, Capital Square and Instant Deposit for sellers.

The payment company has announced that it has hired Amrita Ahuja as its new chief financial officer in January after the departure of former finance director Sarah Friar last year. Ahuja held the same position at Blizzard Entertainment, a division of Blizzard.