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StoneCo Set to Report Q3 Earnings: Buy Now or Wait for Results?

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StoneCo (STNE - Free Report) is slated to release third-quarter 2024 results on Nov. 12.

The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, unchanged over the past 30 days. The estimate indicates 18.52% growth from that reported in the year-ago quarter.

The consensus mark for revenues is pegged at $594.78 million, suggesting a decline of 7.56% from the year-ago quarter’s reported figure.

StoneCo has a mixed earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in one of the trailing four quarters and beat the other three, the average earnings surprise being 5.43%.

StoneCo Ltd. Price and EPS Surprise

 

StoneCo Ltd. Price and EPS Surprise

StoneCo Ltd. price-eps-surprise | StoneCo Ltd. Quote

Let us see how things have shaped up for the upcoming announcement.

Factors to Note for STNE’s Q3 Earnings

StoneCo’s overall software business revenues have benefited from its cross-sell initiatives and improvement in the quality mix of business toward more recurring revenues. This strategic focus has led to robust card Total Payment Volume (TPV) growth among software clients in the key verticals compared with the overall micro, small, and medium businesses card TPV growth.

The trend is expected to have continued in the to-be-reported quarter.

The company's credit offering demonstrated impressive growth, reaching $712 million in the second quarter of 2024 on the successful expansion of its client lending services.

With low non-performing loan ratios and plans to extend its credit offerings to a broader client base, STNE is expected to have benefited from the continued expansion of its credit portfolio in the to-be-reported quarter.

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 is not the case here.

StoneCo has an Earnings ESP of 0.00% but flaunts a Zacks Rank #1 (Strong Buy) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in their upcoming releases:

Shopify (SHOP - Free Report) has an Earnings ESP of +7.63% and presently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify’s shares have gained 10% year to date. SHOP is set to report third-quarter 2024 results on Nov. 12.

Fortinet (FTNT - Free Report) currently has an Earnings ESP of +1.81% and a Zacks Rank of 2.

Fortinet’s shares have gained 34.9% year to date. FTNT is set to report its third-quarter 2024 results on Nov. 7.

Bilibili (BILI - Free Report) presently has an Earnings ESP of +10% and a Zacks Rank of 2.

Bilibili shares have gained 98.3% year to date. BILI is set to report its third-quarter 2024 results on Nov. 14.


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