StoneCo Ltd. (STNE) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - StoneCo Ltd. (STNE) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ended June 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 14, 2024, with a consensus estimate of $0.34 per share, reflecting a year-over-year increase of +79% [3]. - Revenues are projected to be $590.74 million, which is a decrease of 1.1% compared to the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.49%, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for StoneCo is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -16.83% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [7][8]. - StoneCo's current Zacks Rank is 4, which complicates the prediction of an earnings beat [10]. Historical Performance - In the last reported quarter, StoneCo had an earnings surprise of +3.57%, having beaten consensus EPS estimates in all of the last four quarters [11][12]. Conclusion - StoneCo does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings, suggesting that investors should consider other factors before making investment decisions [15].