StoneCo Ltd. (STNE) Q3 Earnings and Revenues Surpass Estimates

Core Viewpoint - StoneCo Ltd. reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and showing an increase from $0.27 per share a year ago, indicating a positive earnings surprise of 9.38% [1] Financial Performance - The company achieved revenues of $605.47 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.80%, although this represents a decline from year-ago revenues of $643.4 million [2] - Over the last four quarters, StoneCo has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - StoneCo shares have declined approximately 35.9% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $632.35 million, and for the current fiscal year, it is $1.21 on revenues of $2.42 billion [7] - The estimate revisions trend for StoneCo is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expectations of outperformance in the near future [6] Industry Context - The Internet - Software industry, to which StoneCo belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]