 Welcome traders to another TickMail earnings report preview with me Patrick Munley for jump into today's report as always want to adhere to the risk disclaimer and Most pertinent to today's presentation is the fact that the views expressed by me are solely mine They're not indicative or representative of those held by TickMail UK or TickMail Europe limited Okay, let's jump into today's report and we are looking at block the Paranova Square We're looking for earnings, which are going to be released after the close of trade in New York today And it's for share of 17 cents on revenue of 4.38 billion would highlight There is a whisper number that the EPS could be as high as 19 cents Investors really need to watch consumer related metrics the sell side's consensus numbers and the company's management's comments The prior quarterly earnings call to do a preview of blocks upcoming results expectations for blocks Q2 2022 earnings are muted Implying a low probability of a negative surprise for Square when it reports results this evening Squares Q2 2022 results should still be poor as evidenced by the expectations of declines in both its top and bottom line for the coming quarter On the other hand block still boast significant potential growth in the long run as seen with its total addressable market or TAM Projections revealed at its invested day in May Wall Street analysts consensus Financial projections point to blocks revenue declining 7.4 percent year over year from 4.681 million in the second quarter of 2021 to 4.335 million in the second quarter of 2022 as per the S&P capital IQ data Assuming that the sell side analysts are right Q2 2022 will represent the second consecutive quarter of year over year top line contraction The expectation of lower sales on a year-over-year basis for Square in Q2 2022 Are reasonable taking into account metrics relating to consumer spending and consumer confidence in general a July 28 2022 Reuters article noted that the growth in the US consumer spending for the second quarter of 2022 It's likely at its slowest pace for two years US consumer confidence has declined for three straight months From May to July in this year Given that the users of blocks cash app in general tend to be younger and less well off the company's top line is more likely to be Adversely affected by weaker consumer confidence and a reduction in consumer spending Block is also expected to deliver weaker profitability for the upcoming quarter as per consensus estimates obtained from the S&P capital IQ Squares EBITDA is forecasted to fall by 62% year-of-year 237 million the second quarter of the current year similarly blocks non-gap adjusted earnings per share is estimated to drop by 75% year-of-the-year in the second quarter of 2022 The expected sharp decline in the operating profit and the bottom line for Square in the upcoming quarter is no surprise Costs relating to the integration of after-pay and continued investments to sustain long-term growth We're expected to dampen blocks profitability in the second quarter net net blocks second quarter 2022 financial results Unexpected to be pretty with both its revenue and earnings forecast to contract euro on a year-over-year basis in the upcoming quarter But on the positive side of things blocks poor near-term outlook has been priced into its valuation While its positive long-term prospects do remain intact Let's take a look at some of the statistical trading patterns that we can Identify around a block earning square shares and moved higher in the immediate aftermath of earnings 9 out of 12 Previous reports on average the stock has moved up 4.5% in the first day of trading after companies earnings report based on the previous 12 earnings releases Square is more likely to trade lower one day after earnings for an average loss of 2% on the Average the stock has moved her by 5.1% one week after earnings Volatility perspective options traders are pricing an 11.5% move on earnings and the stock has averaged an 8.8% move in recent quarters From a flow and sentiment perspective that has been notable buying 4747 contracts of the bullish $100 call expiring tomorrow Friday options order flow in general has actually been Bullish as well investor sentiment has 51% Expecting an earnings beat share price has drifted 17.8% to the downside post its last earnings announcement using the last 12 quarters of data the average drift between earnings Announcements is 4.7% Let's pull up the chart here and and take a look and see if we can identify any near-term trading opportunities Bear in mind we've got that bullish sentiment from both the options market and this near-term Corbine, let's take a look and see Where we could look to engage here. So from a technical perspective, we're Bring in the bottoming pattern here, and if we overlay the pitchfork, I'd like to see any move through the $92 level. I want to be engaged on the long side initially targeting the projected trend channel resistance of us 105 55 and then as this 92 area acts as support then I think we can extend up into the 121 area and that would represent a symmetry swing versus the last upside move we saw in the back end of February this year So we saw that advance before before we saw the next aid to the downside into that 55 swing low The alternative scenario is we hold this resistance at the 91 92 level any three-way corrective move back into test the 68 area as support again I'll be watching for bullish reversal patterns still like to think we can make a move through this 92 ultimately and get up to Make a test of the 121 notably we have broken out of the weekly descending trend channel and held the weekly high volume low there at 164 80 so looking for upside here unless we get a really miserable Outlook from from the earnings report, but for now structurally looking to test 121 on the upside as always traders plan the trade trade the plan and most importantly manage your risk until next time Thanks very much