By Hannah Lang
(Reuters) - Shares in Jack Dorsey-led Block surged nearly 12% on Thursday after the company forecast adjusted core earnings for the current quarter above Wall Street estimates as the payments firm bets on continued consumer resilience and its cost-cutting measures.
The company expects adjusted core earnings between $570 million and $590 million for the three months ended March 31, compared with analysts' average expectation of $511.76 million, according to LSEG data.
A strong holiday season has put consumer spending on a stronger path heading into 2024 as Americans put aside worries of an economic slowdown to keep shopping, dining out and traveling.
Meanwhile, Block has been looking to lower costs and drive "profitable growth" in the business by cutting jobs and reducing its real estate footprint. The company has previously said it expects significant improvement in operating margins this year as these measures bear fruit.
Total net revenue rose 24% to $5.77 billion in the fourth quarter. Excluding bitcoin, revenue came in at $3.25 billion, up 15% compared to a year earlier.
(Reporting by Hannah Lang in Washington; Editing by Chris Reese)
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