Overview of Q4 2023 Earnings Projection
StoneCo (STNE) is geared up to reveal its performance metrics for the final quarter of 2023 on Mar 18. Analysts project quarterly revenues to reach around $468.47 million, indicating a slight dip of 8.90% compared to the same period last year.
The expected earnings per share (EPS) is consistent at 29 cents, mirroring the figure from the prior 30 days. In the parallel quarter, StoneCo had reported earnings of 14 cents per share.
From a historical viewpoint, StoneCo has outperformed the market consensus in the past four quarters, boasting an average earnings surprise of 16.03%.
Exploring the Factors at Play
StoneCo’s upcoming quarterly results are anticipated to benefit from sustained growth trajectories within its primary realms, notably the financial services and software domains.
The financial services arm, especially the dynamic Micro, Small, and Medium-sized Businesses (MSMB) sector, is anticipated to be a pivotal driver of growth. With an upsurge in Total Payment Volume and improved take rates, this segment is expected to exhibit robust financial performance in the upcoming quarter.
Moreover, StoneCo’s strategic initiatives to enhance its banking solutions for small and medium-sized businesses, as showcased by offerings like the Super Conta Ton, are likely to enhance banking revenues in the current quarter.
The company’s credit offerings have shown substantial progress, hitting $113 million in the third quarter of 2023. Continual expansion plans of credit portfolios to encompass more clients are poised to reflect positively on StoneCo’s financials for Q4.
On the software front, encompassing Point of Sale and Enterprise Resource Planning solutions, StoneCo is expected to maintain growth momentum, reflecting its commitment to technological advancements.
Insights from Data Models
According to Zacks’ predictive models, a favorable Earnings ESP coupled with a Zacks Rank #1, #2, or #3 enhances the likelihood of an earnings beat. Nevertheless, StoneCo currently presents a scenario that may not align with this trend.
The company holds an Earnings ESP of 0.00% alongside a Zacks Rank #2 (Buy). For further insights into potential market moves pre-earnings reports, investors can leverage the Earnings ESP Filter.
Considerations for Investors
In light of the imminent earnings announcements, investors are encouraged to explore potential opportunities that exhibit the right mix of components for surpassing market expectations:
Rekor Systems (REKR) flaunts an Earnings ESP of +5.72% alongside a Zacks Rank #2. Progress Software (PRGS) carries an Earnings ESP of +0.44% and a Zacks Rank of 3. Alpine Immune Sciences (ALPN) reveals an Earnings ESP of +8.57% paired with a Zacks Rank #3.
These insights, alongside the informative Zacks Earnings Calendar, provide a comprehensive outlook for upcoming market dynamics and earnings trends,
