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StoneCo’s (STNE - Free Report) second-quarter 2023 non-GAAP earnings of 19 cents per share beat the Zacks Consensus Estimate by 11.76%. In domestic currency, earnings were R$0.94 per share, up from R$0.18 reported in the year-ago quarter.
Moreover, revenues of $597 million surpassed the consensus mark by 48.46%. In domestic currency, revenues increased 28.2% year over year to R$2.95 billion.
Quarter Details
Net revenues from transaction activities and other services jumped 38.4% year over year to R$840.1 million. The upside was driven by robust Total Payment Volume (“TPV”) growth.
Net revenues from subscription services and equipment rental rose 4.5% year over year to R$457.3 million.
Financial income was R$1.46 billion, up 32.4% from the year-ago quarter. Other financial income increased 26.2% year over year to R$194.8 million.
StoneCo reached an active payments client base of 3 million, up 42% year over year. The company added 196,600 customers in the quarter. It also added 203,900 small and medium businesses in the same time period.
TPV was R$97.4 billion, up 7.4% year over year. The upside can be attributed to strong growth of 19.3% in the MSMB segment and partially offset by a 32.5% plunge in Key Accounts’ TPV.
Administrative expenses as a percentage of revenues decreased 90 bps year over year to 9.1%.
Net financial expenses, as a percentage of revenues, declined 520 bps on a year-over-year basis to 35.9%.
Moreover, selling expenses as a percentage of revenues contracted 60 bps on a year-over-year basis to 13.9%.
Balance Sheet & Cash Flow
As of Jun 30, 2023, StoneCo’s cash & cash equivalents were R$2.2 billion compared with R$1.86 billion as of Mar 31, 2023.
Operating cash outflow was R$832.5 million compared with R$714.6 million reported in the year-ago quarter.
Guidance
For third-quarter 2023, StoneCo expects to report total revenue above R$3.08 million, indicating a year over year growth of 22.6%.
MSMB TPV is expected to be between R$87 billion and R$88 billion.
Moreover, adjusted EBT is expected to be above R$470 million, indicating a 182.6% year-over-year growth.
Zacks Rank & Stocks to Pick
StoneCo has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are scheduled to report their earnings soon are NVIDIA (NVDA - Free Report) , Workday (WDAY - Free Report) and Hewlett Packard (HPE - Free Report) . NVIDIA and Workday sports a Zacks Rank #1 (Strong Buy), whereas Hewlett Packard carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA shares have gained 197.5% year to date. NVDA is set to report second-quarter 2023 results on Aug 23.
Workday’s shares have gained 37.7% year to date. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.
Hewlett Packard shares have surged 6.7% year to date. HPE is set to report third-quarter fiscal 2023 results on Aug 29.
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StoneCo (STNE) Q2 Earnings Beat Estimates, Revenues Rise
StoneCo’s (STNE - Free Report) second-quarter 2023 non-GAAP earnings of 19 cents per share beat the Zacks Consensus Estimate by 11.76%. In domestic currency, earnings were R$0.94 per share, up from R$0.18 reported in the year-ago quarter.
Moreover, revenues of $597 million surpassed the consensus mark by 48.46%. In domestic currency, revenues increased 28.2% year over year to R$2.95 billion.
Quarter Details
Net revenues from transaction activities and other services jumped 38.4% year over year to R$840.1 million. The upside was driven by robust Total Payment Volume (“TPV”) growth.
Net revenues from subscription services and equipment rental rose 4.5% year over year to R$457.3 million.
StoneCo Ltd. Price, Consensus and EPS Surprise
StoneCo Ltd. price-consensus-eps-surprise-chart | StoneCo Ltd. Quote
Financial income was R$1.46 billion, up 32.4% from the year-ago quarter. Other financial income increased 26.2% year over year to R$194.8 million.
StoneCo reached an active payments client base of 3 million, up 42% year over year. The company added 196,600 customers in the quarter. It also added 203,900 small and medium businesses in the same time period.
TPV was R$97.4 billion, up 7.4% year over year. The upside can be attributed to strong growth of 19.3% in the MSMB segment and partially offset by a 32.5% plunge in Key Accounts’ TPV.
Administrative expenses as a percentage of revenues decreased 90 bps year over year to 9.1%.
Net financial expenses, as a percentage of revenues, declined 520 bps on a year-over-year basis to 35.9%.
Moreover, selling expenses as a percentage of revenues contracted 60 bps on a year-over-year basis to 13.9%.
Balance Sheet & Cash Flow
As of Jun 30, 2023, StoneCo’s cash & cash equivalents were R$2.2 billion compared with R$1.86 billion as of Mar 31, 2023.
Operating cash outflow was R$832.5 million compared with R$714.6 million reported in the year-ago quarter.
Guidance
For third-quarter 2023, StoneCo expects to report total revenue above R$3.08 million, indicating a year over year growth of 22.6%.
MSMB TPV is expected to be between R$87 billion and R$88 billion.
Moreover, adjusted EBT is expected to be above R$470 million, indicating a 182.6% year-over-year growth.
Zacks Rank & Stocks to Pick
StoneCo has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are scheduled to report their earnings soon are NVIDIA (NVDA - Free Report) , Workday (WDAY - Free Report) and Hewlett Packard (HPE - Free Report) . NVIDIA and Workday sports a Zacks Rank #1 (Strong Buy), whereas Hewlett Packard carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA shares have gained 197.5% year to date. NVDA is set to report second-quarter 2023 results on Aug 23.
Workday’s shares have gained 37.7% year to date. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.
Hewlett Packard shares have surged 6.7% year to date. HPE is set to report third-quarter fiscal 2023 results on Aug 29.