Square Inc. posted an earnings beat and raised its outlook for the full year Wednesday afternoon, but shares still slumped more than 2% in immediate after-hours trading. Square reported a third-quarter net loss of $16 million, or 4 cents a share, on revenue of $585.2 million, up from $439 million a year ago. After adjusting for stock-based compensation expenses and other effects, Square claimed earnings of 7 cents a share, up from a penny a share a year ago, on adjusted revenue–which subtracts transaction-based costs–of $257.2 million. Analysts on average expected adjusted earnings of 5 cents a share on adjusted revenue of $245.2 million, according to FactSet. Square had projected third-quarter adjusted earnings of 4 cents to 5 cents a share on adjusted revenue of $238 million to $241 million. Square also raised its full-year outlook, saying that it now expects net revenue of $2.18 billion to $2.19 billion, after previously projecting $2.14 billion to $2.16 billion; adjusted revenue of $963 million to $966 million, after a previous forecast of $925 million to $935 million; and adjusted earnings of 24 cents to 25 cents a share, up from 21 cents to 23 cents a share. Square stock closed at $36.71, but fell lower than $36 in late trading.
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