Core Viewpoint - Inter & Co. Inc. (INTR) is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price gains [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Inter & Co. Inc.'s earnings prospects, as reflected in the upward trend of estimate revisions, which historically correlates with stock price movements [2]. - The consensus earnings estimate for the current quarter is $0.14 per share, representing a year-over-year increase of +40.0%. Over the last 30 days, the Zacks Consensus Estimate has risen by 10.26% with no negative revisions [6]. - For the full year, the earnings estimate stands at $0.56 per share, reflecting a +47.4% change from the previous year. In the past month, three estimates have been raised with no negative revisions [7]. Zacks Rank and Performance - Inter & Co. Inc. currently holds a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on the positive estimate revisions [8]. - Historically, stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have significantly outperformed the S&P 500, suggesting a strong potential for Inter & Co. Inc. to deliver returns [8]. Stock Performance - The stock has experienced a 13.5% gain over the past four weeks, driven by solid estimate revisions, reinforcing the potential for further price appreciation as earnings growth prospects improve [9].

Group 1 - Inter & Co. Inc. (INTR) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2] - The Zacks rating system is based on changes in earnings estimates, making it a valuable tool for investors to gauge stock performance [2][5] - The correlation between earnings estimate revisions and stock price movements is strong, largely due to institutional investors adjusting their valuations based on these estimates [3][4] Group 2 - The Zacks Consensus Estimate for Inter & Co. Inc. has increased by 4.4% over the past three months, with expected earnings of $0.56 per share for the fiscal year ending December 2025, indicating no year-over-year change [7] - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, highlighting the potential for superior returns [8][9] - The upgrade to Zacks Rank 2 places Inter & Co. Inc. in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock's performance in the near term [9]

Group 1 - The recommendation is to buy shares of Inter & Co (NASDAQ: INTR) following the disclosure of Q2 results [1] - The analysis is based on over 5 years of experience in equity analysis in Latin America, providing in-depth research and insights for informed investment decisions [1]

Core Insights - Inter & Co. reported strong Q2 earnings, leading to a significant stock price increase of 14.24% to $7.46, marking the highest single-day volatility since July 2023 [1] - Analysts upgraded the stock rating from "Neutral" to "Buy" due to improved profitability and execution efficiency since November 2023 [4] Financial Performance - Q2 earnings per share (EPS) reached $0.13, exceeding analyst expectations of $0.12 by 8.33%, and representing a 44.44% increase from $0.09 in the same quarter last year [1] - Q2 revenue was $353.548 million, surpassing the average analyst forecast of $337 million by 4.91%, and showing a 24.59% growth from $283.765 million year-over-year [1] - Net profit surged 49% year-over-year to 332 million Brazilian Reais (approximately $60.7 million), with a return on equity of 13.6%, up 3.9 percentage points from the previous year [1] Credit Portfolio and Growth - The company's credit portfolio exceeded 40.2 billion Brazilian Reais, growing 22% over the past 12 months, with an annual growth forecast of 25%-30% [4] - 70% of the credit assets are secured by collateral, indicating strong risk resilience [4] - The expansion in credit is primarily driven by a new private wage loan product launched by the Brazilian government in March, which utilizes a centralized wage database for risk assessment [4] - As of the end of June, the new product's portfolio reached 728 million Brazilian Reais, with expectations to surpass 1 billion Reais in Q3 [4] Analyst Sentiment - Analysts from BTG Pactual and Citigroup provided positive evaluations, highlighting improvements in net interest margin, asset quality, and operational efficiency [4] - Despite acknowledging short-term impacts on profitability due to provisions for the new wage loan business, the company views this as a strategic opportunity to penetrate a market traditionally dominated by conventional banks [4]

Financial Performance - Inter & Co. Inc. reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.09 per share a year ago, representing an earnings surprise of +8.33% [1] - The company posted revenues of $353.55 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.91%, compared to year-ago revenues of $283.71 million [2] Stock Performance - Inter & Co. Inc. shares have increased approximately 54.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $348.76 million, and for the current fiscal year, it is $0.53 on revenues of $1.38 billion [7] - The estimate revisions trend for Inter & Co. Inc. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Miscellaneous Services industry, to which Inter & Co. Inc. belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The company reported a record net income of BRL 315 million, achieving a record return on equity (ROE) of 13.9% [39] - Total gross revenues reached BRL 2.0 billion, reflecting a year-over-year growth of 4835% [32] - The cost of risk was reported at 5%, with expectations to remain in the range of 5% to 5.25% [66][70] Business Line Data and Key Metrics Changes - The private payroll loan portfolio grew to BRL 728 million, serving 153,000 clients, indicating strong digital distribution [21] - Credit penetration among active clients reached 33.8%, supported by initiatives like monthly credit reassessments [20] - The investments vertical saw active clients grow by 38% year-over-year, reaching 7.9 million [22] Market Data and Key Metrics Changes - Total payment value grew by 33% year-over-year, reaching BRL 374 billion, with PIX accounting for BRL 346 billion [18] - The global account client base grew by 34% year-over-year, reaching 4.4 million, with deposits surpassing $294 million, marking a 90% year-over-year increase [25] - The company achieved a net promoter score of 85, indicating strong customer satisfaction [15] Company Strategy and Development Direction - The company aims to enhance client experience through innovative features like MyCredit and My Piggy Bank, focusing on sustainable credit options [8][10] - The strategy includes diversifying fee sources and building a strong funding franchise, which has compounded profitability over the last ten quarters [7] - The company is committed to maintaining a strong balance sheet while investing in long-term growth opportunities [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges, citing a diversified loan portfolio and strong asset quality metrics [64] - The outlook for the private payroll product remains positive, with expectations of achieving an ROE beyond 30% [50] - Management highlighted the importance of client-centric approaches and effective capital allocation to drive future growth [94] Other Important Information - The company is in a subsidy period for converting BDRs to Class A shares, which is expected to enhance share liquidity in the U.S. market [42] - The company continues to invest in technology and marketing to strengthen brand awareness and operational efficiency [36][38] Q&A Session Summary Question: Update on the private payroll product and its success - Management is optimistic about the private payroll product, expecting to surpass BRL 1 billion in portfolio soon, with delinquency rates better than initially forecasted [48][50] Question: Outlook for credit quality and provisioning levels - Management indicated that the cost of risk is expected to remain stable, with a focus on optimizing risk-adjusted NIM [66][70] Question: Margins on NIM statement and product performance - The company reported improvements in personal loan yields, driven by a favorable competitive dynamic and effective repricing strategies [74][76] Question: Renegotiated portfolio classification and strategy - Management clarified that renegotiated portfolios are primarily classified within stage one, focusing on commercial renegotiations for real estate contracts [110][112] Question: Insights on the 06/3030 plan and future KPIs - Management expressed confidence in achieving the 06/3030 plan, emphasizing the network effect and the tools available to drive growth [94]

Financial Data and Key Metrics Changes - The company reported a record net income of BRL315 million, achieving a record ROE of 13.9% [36] - Total gross revenues reached BRL2.0 billion, reflecting a year-over-year growth of 4835% [30] - The cost of risk reached 5%, with expectations to maintain this level despite growth in riskier products [64][66] Business Line Data and Key Metrics Changes - The private payroll loan portfolio grew to BRL728 million, serving 153,000 clients, demonstrating strong digital distribution [18] - Credit penetration among active clients reached 33.8%, indicating healthy growth in credit offerings [17] - The investments vertical saw a 38% year-over-year growth in active clients, reaching 7.9 million [19] Market Data and Key Metrics Changes - Total payment value grew by 33% year-over-year, reaching BRL374 billion, with PIX accounting for BRL346 billion [16] - The global account client base grew by 34% year-over-year, reaching 4.4 million, with deposits surpassing $294 million, up 90% year-over-year [22] - The company achieved a market share of 8% in the PIX segment, indicating strong competitive positioning [105] Company Strategy and Development Direction - The company focuses on building long-term value through innovative products like MyCredit and My Piggy Bank, enhancing client engagement and financial education [7][9] - The strategy emphasizes sustainable credit options and diversifying fee sources to strengthen profitability [6] - The company aims to leverage its digital platform to enhance user experience and drive cross-selling opportunities across its verticals [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong asset quality, with the lowest NPL levels since 2022 [62] - The outlook for credit quality remains positive, with expectations for continued growth in higher risk segments [64][66] - The company anticipates achieving its six-thirty-thirty plan by 2027, focusing on client growth, efficiency, and ROE [92][94] Other Important Information - The company is migrating share liquidity to the U.S. market, with over 50% of combined volume on most trading days [40] - The subsidy period for converting BDRs to Class A shares ends on August 30 [40] Q&A Session Summary Question: Update on the private payroll product and its success - Management is optimistic about the private payroll product, expecting it to exceed BRL1 billion in portfolio soon, with delinquency rates better than initially forecasted [46][64] Question: Outlook for credit quality and provisioning levels - Management indicated that the cost of risk is expected to remain between 5% to 5.25%, with improvements in asset quality and credit penetration [64][66] Question: Margins on NIM statement and product yields - The company reported an increase in personal loan yields from 19.5% to 23%, driven by a favorable competitive dynamic and product mix [71][73] Question: Changes in the credit card offering - The reshaping of the credit card portfolio focuses on increasing interest-earning products and improving customer solutions for delinquency [80][82] Question: Insights on the 06/3030 plan and future KPIs - Management is confident in achieving the six-thirty-thirty plan, emphasizing the importance of capital allocation and customer-centric approaches [92][94]

Earnings Presentation 2Q2025 August 2025 1 Earnings Presentation | 2Q25 Earnings Presentation | 2Q25 Earnings Presentation | 2Q25 Agenda João Vitor Menin | Global CEO Alexandre Riccio | Brazil CEO 1. CEO Overview 2. Business Update 3. Financial Performance Santiago Stel | SVP CFO 2 Earnings Presentation | 2Q25 Disclaimer This report may contain forward-looking statements regarding Inter, anticipated synergies, growth plans, projected results and future strategies. While these forward-looking statements refl ...

Core Insights - Inter&Co Inc. reported strong financial results for Q2 2025, highlighting a focused strategy on profitability, sustained growth, and innovation [3][6] - The company achieved a net income of US$57.8 million (R$315 million), representing a 53% year-over-year increase, with a return on equity (ROE) of 14% [6] Financial Performance - Total credit portfolio grew by 22% year-over-year, significantly outpacing the Brazilian market [6] - Gross loan portfolio expanded by 8% in the quarter, reaching US$7.3 billion (R$40.2 billion) [6] - Non-performing loans (NPLs) over 90 days remained stable at 4.6%, showing a 0.5 percentage point improvement compared to the previous year [6] - Efficiency ratio improved to 47.1%, up by 1.1 percentage points from Q1 2025 [6] Client Growth and Engagement - Total clients reached 39.3 million by the end of the quarter, with 1.1 million new active clients added [6] - Inter&Co surpassed the 40 million client milestone in August 2025 [6] - The launch of 'My Credit Journey' aims to deepen credit penetration and improve client relationships [3][6] Brand Recognition - Inter&Co was recognized as the seventh most powerful brand in Brazil and the number one banking brand among Gen Zs [3]

Core Insights - Burford Capital Limited (BUR) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with a consensus EPS estimate of $0.33, reflecting a 37.5% increase compared to the previous year [1][3] - The upcoming earnings report, scheduled for August 7, could influence the stock price significantly depending on whether the actual results meet or exceed expectations [2] Earnings Estimates - Revenues for Burford Capital are projected to be $160.24 million, which is a slight increase of 0.4% from the same quarter last year [3] - The consensus EPS estimate has been revised down by 7.85% over the last 30 days, indicating a more cautious outlook from analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Burford Capital is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -17.51%, suggesting a bearish sentiment among analysts [12] - The stock currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12] Historical Performance - In the last reported quarter, Burford Capital was expected to post earnings of $0.30 per share but only achieved $0.14, resulting in a surprise of -53.33% [13] - Over the past four quarters, the company has only surpassed consensus EPS estimates once [14] Comparative Analysis - In contrast, Inter & Co. Inc. (INTR), another player in the financial services industry, is expected to report an EPS of $0.12 for the same quarter, indicating a year-over-year increase of 33.3% with revenues projected at $337 million, up 18.8% [18][19] - Inter & Co. Inc. has a positive Earnings ESP of +5.41% and a Zacks Rank of 3, suggesting a higher likelihood of beating the consensus EPS estimate [19][20]