DLocal (DLO) Surpasses Q1 Earnings and Revenue Estimates

Core Viewpoint - DLocal reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.07 per share a year ago, representing a 25% earnings surprise [1][2] Financial Performance - The company achieved revenues of $216.76 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.92%, and up from $184.43 million year-over-year [2] - Over the last four quarters, DLocal has exceeded consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance and Outlook - DLocal shares have declined approximately 12.5% since the beginning of the year, contrasting with the S&P 500's slight gain of 0.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $227.42 million, and for the current fiscal year, it is $0.55 on revenues of $952.81 million [7] - The estimate revisions trend for DLocal is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which DLocal belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]