 Welcome traders to another Tickman earnings report preview with me Patrick Manley before we jump into today's report It's important here to the risk disclaimer material provided is for information purposes only it should not be considered as investment advice Views information and opinions expressed by me are solely mine. They're not indicative or representative of those held by Tickman UK Or Tickman Europe limited. Okay, let's jump into today's report. We are looking at block block report earnings after The New York closed this evening. We're looking for an earnings per share print of 18 cents on revenue of four point two three billion there's a whisper number on the street that the EPS could print at 23 cents in terms of what to look for in the report Investors will be focusing on blocks GPV a key metric tracking the total dollar amount let's have refunds of all car payments Processed by sellers using the company's payments ecosystem It includes peer-to-peer payments as well as transactions with merchants that use blocks mobile payment app Block charges transaction fees on these gross payments and those fees constitute a major source of revenue Transaction fees are generally calculated on a percentage of the total transaction amount process the greater the GB fee the GBD, sorry the more Transaction based revenue block is able to generate GBGPV Also provides an indication of how many users the company has on its platform if block can attract More users to its main payments ecosystem Then it will be able to direct more traffic to its other businesses This helps fuel more revenue because block takes a cut of their transactions in addition to blocks GPV Has been fueled by acquisitions that provide business services to different clients and its additional businesses Helps spur people to use more of their other services beyond the company's well-known catch-up brand in the last 16 quarters blocks GPV has only declined year-of-year one time and that was in the second quarter fiscal year 2020 since then blockers reported six straight quarters of accelerating growth in the Second quarter fiscal year 2021 GPV rose 87.8% the biggest increase in recent quarters in fact each of the last three quarters in The fiscal year 2021 posted the biggest quarterly GPV growth compared to the three years prior Analysts continue to expect healthy growth of 37.4% whilst they expect that growth to be slower than the fourth quarter of 2021 it Should prove to be faster than the first quarter of 2021 in a comparable So let's look at some of the statistical trading patterns around the block release Shares have moved higher in the immediate aftermath of earnings eight out of the last 12 previous reports on average The stock has moved up 3.8% in the first day of trading after the company reports earnings Based on the previous 12 earnings releases. It's more likely to trade lower one day after the earnings for an average loss Negative 0.8% short increase interest has increased by 11.1% since the company's last earnings release Whilst the stock has drifted lower by 13.4% from its open following the earnings release to 47% below its 200 day moving average of $187.92 in terms of what the options market is telling us in Implied volatility and where we could see the price move looking at a potential 16.1% move on earnings the stock has averaged a 10.9 cent move in recent quarters Looking at sentiment and flow we Note that there's been some decent buying 5024 contracts of a $95 call expiring Friday June 17th Options order flow sentiment in general though is bearish Investor sentiment going into the company's earnings release has 69% expecting an earnings being Consensus estimates are for earnings to decline year-over-year by 55% with revenue decreasing by 16.3% As mentioned short interest has increased in the company to to print as high as 11.1% Let's take a look at the charts now and see where there might be some some trading opportunities in the in the post release here So as with a lot of tech obviously we have have seen some significant downside But it is noteworthy at the moment whilst we hold this $93.39 area there is the potential if we can get a move back through the $110 area I like to be long this stock Looking for advance up into test monthly projected range resistance back into the $140 area as pullbacks remain supported We will actually have an equality objective test set up at $159.92 on the upside so that's the bullish scenario if If there's a negative response to earnings then it's notable We have this high-volume load on the weekly chart at $75.60. So any close through 93 39 To my mind will be an opportunity to engage on the short side Targeting out move down to the $75.60 area and then we'll see if buyers step into To try and put in a countertrend corrective rally as always traders plan the trade trade the plan and most importantly manage your risk until next time Thanks very much