XP Inc.A (XP) Q4 Earnings Lag Estimates

Group 1: Earnings Performance - XP Inc.A reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of$ 1.39 per share, and down from $0.42 per share a year ago, representing an earnings surprise of -72.66% [1] - The company posted revenues of$ 767.81 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.85%, but down from year-ago revenues of $816.83 million [2] - Over the last four quarters, XP Inc.A has not been able to surpass consensus EPS estimates [2] Group 2: Stock Performance and Outlook - XP Inc.A shares have increased approximately 24.4% since the beginning of the year, compared to the S&P 500's gain of 4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is$ 0.37 on revenues of $739.94 million, and for the current fiscal year, it is$ 5.60 on revenues of $3.1 billion [7] Group 3: Industry Context - The Zacks Industry Rank for Financial - Miscellaneous Services is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The estimate revisions trend for XP Inc.A is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting it may underperform the market in the near future [6]