StoneCo STNE is slated to release first-quarter 2024 results on May 13.
The consensus mark for earnings is pegged at 28 cents per share, down by a couple of cents in the past 30 days. The company reported earnings of 14 cents in the year-ago quarter.
StoneCo beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 12.34% on average.
Let’s see how things have shaped up for the upcoming announcement.
StoneCo Ltd. Price and EPS Surprise
StoneCo Ltd. price-eps-surprise | StoneCo Ltd. Quote
Factors to Note
StoneCo’s first-quarter performance is likely to have benefited from continued momentum in its primary sectors, notably within the financial services and software business.
StoneCo’s robust solutions in the financial services segment, particularly its MSMB (Micro, Small and Medium-sized Businesses) offerings, are likely to have been a key growth driver. With above-industry Total Payment Volume growth and higher take rates, this segment is expected to have delivered robust financial results in the to-be-reported quarter.
Strengthening efforts in enhancing its banking solutions for small and medium-sized businesses, evident by the introduction of solutions like the Super Conta Ton, is expected to have contributed to banking revenues in the quarter under review.
StoneCo’s credit offering has shown significant growth, reaching $309 million in 2023. With low non-performing loan ratios and plans to extend the credit offering to more clients, StoneCo is expected to have benefited from the continued expansion of its credit portfolio in the first quarter.
The company’s increasing focus on implementing cost management approaches, such as shared-services centers and zero-based budgeting to boost profitability and operational efficiency, is likely to have driven significant operating leverage in the to-be-reported.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
StoneCo has an Earnings ESP of -8.23% and a Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
NVIDIA NVDA has an Earnings ESP of +2.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA’s shares have surged 79.2% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.
Agilent Technologies A has an Earnings ESP of +0.72% and a Zacks Rank #3.
The stock has inched up 4.4% year to date. A is set to report its second-quarter fiscal 2024 results on May 29.
Applied Materials AMAT has an Earnings ESP of +0.31% and a Zacks Rank #3 at present.
Applied Materials’ shares have gained 27.3% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
