Block Earnings: We See Ongoing Progress in the Pivot Toward Better Profitability

Block's third-quarter earnings largely mirrored what we saw from the company in the second quarter. Management continues to make strides in improving profitability, and we remain encouraged by this shift in focus. We will maintain our $90 fair value estimate and see shares as modestly undervalued at the moment, although we would highlight our Morningstar Uncertainty Rating of Very High for the narrow-moat company.