Square's earnings expectations have gotten slashed, but the mobile-payments company still has a high bar to clear

The Jack Dorsey-led mobile payments company is set to release first-quarter earnings after the bell on Wednesday. Analysts have pared down their expectations for those results by about $0.04 a share in recent months afterAt the same time, Square has to dazzle investors on several fronts — like sales and EBITDA — to justify its pricey valuation of more than 100 times forward earnings.

"SQ has exceeded Street revenue and EBITDA estimates by an average of $15M and $3M, respectively, the past four quarters," JPMorgan analysts led by Tien-tsin Huang wrote in a note to clients on April 23."We see this momentum continuing in 1Q, which is required for SQ to maintain its premium valuation."Here's what Wall Street analysts surveyed by Bloomberg are expecting.

"With lots of energy and competition for on-demand banking services like Cash App, we expect investments to drive habitual usage to stay elevated."In a mid-April note to investors, SunTrust analysts led by Andrew Jeffrey said that while the Square is the"most dynamic and disruptive name we follow," its high valuation has everything priced in.More broadly, Wall Street analysts are nearly split between bullish and neutral.

Square shares have jumped 32% this year, but remain 26% below their all-time high of $101.15 set in October.

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