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Feb. 27 (Reuters) – Square Inc. on Wednesday forecast lower earnings than Wall Street for the current quarter as the payment company expects to spend more on growth opportunities, dropping its shares by 6% after hours.
For the quarter, Square said expect an adjusted profit of between 6 and 8 cents per share, a result lower than the average estimate of 11 cents by analysts.
The San Francisco-based company, best known for its small, white-label smart card readers, has aggressively expanded to a wider range of financial services, from loans to accounting software.
Total operating expenses rose 51.5% to € 383.2 million in the fourth quarter as the company invested more in product development, sales and marketing.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The company, created and led by Twitter Inc. Chief The leader Jack Dorsey said net loss increased to $ 28.2 million, or 7 cents per share, in the quarter ended December 31, from $ 15.7 million, or 4 cents a share, a year ago.https://bit.ly/2tI4MaK) "data-reactid =" 16 "> The company, founded and run by Twitter Inc. CEO Jack Dorsey, reported a net loss of $ 15.7 million, up $ 28.7 million $ 7 per share, or 4 cents per share, a year ago. (https://bit.ly/2tI4MaK)
On an adjusted basis, the company generated a return of 14 cents per share, exceeding previous estimates of 13 cents, according to Refinitiv's IBES data.
Total revenues increased 51% to $ 932.5 million. (Report by Bharath Manjesh in Bengaluru, edited by Shinjini Ganguli)