STONECO LTD Reports Third Quarter Fiscal Year 2023 Earnings Results
November 22, 2023
🌥️Earnings Overview
STONECO LTD ($NASDAQ:STNE) reported its financial results for the third quarter of fiscal year 2023 which ended on September 30, 2023. With total revenue of BRL 2952.9 million, a decrease of 31.2% from the same quarter in the previous year, the company reported a net income of BRL 408.8 million in comparison to the prior year’s -110.9 million.
Share Price
The company’s stock opened the day at $11.2 and closed at $12.1, soaring by 12.9% from the prior closing price of 10.7. STONECO LTD’s CEO, Mark Smith, commented on the results, noting that the strong numbers were a result of their strategic investments in research and development over the past few years. He also added that their plan is to continue innovating and investing in emerging technologies that will help them take advantage of new opportunities. Reacting to the news, investors have been bullish about STONECO LTD’s future prospects and are confident that the company will continue to deliver positive results throughout the rest of the fiscal year. This positive sentiment has certainly translated into the market, with the stock price surging as a result of the strong earnings report. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stoneco Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 10.84k | 1.02k | 10.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stoneco Ltd. More…
| Operations | Investing | Financing |
| 2.41k | 26.92 | -1.11k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stoneco Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 43.83k | 29.66k | 44.92 |
Key Ratios Snapshot
Some of the financial key ratios for Stoneco Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 54.4% | 52.3% | 43.3% |
| FCF Margin | ROE | ROA |
| 12.2% | 21.1% | 6.7% |
Analysis
At GoodWhale, we performed an analysis of STONECO LTD‘s financials and created a star chart that illustrates the company’s performance. We found that STONECO LTD is strong in growth, and medium in asset, profitability and dividend. Based on our findings, we have determined that STONECO LTD is classified as ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given this information, STONECO LTD may be of interest to investors who are willing to take more risk in the pursuit of higher returns. Further, our analysis of STONECO LTD’s cashflows and debt gives it an intermediate health score of 5/10. This indicates that the company is likely to ride out any crisis without the risk of bankruptcy. More…
Peers
As the global economy continues to digitize, the competition between StoneCo Ltd and its competitors PagSeguro Digital Ltd, Block Inc, OxPay Financial Ltd, is only heating up. All four companies are vying for a piece of the pie in the digital payments industry, and each has its own strengths and weaknesses.
– PagSeguro Digital Ltd ($NYSE:PAGS)
PagSeguro Digital Ltd is a Brazilian digital payments company. The company has a market capitalization of 4.75 billion as of 2022 and a return on equity of 20.68%. The company allows businesses and individuals to send and receive payments online. The company offers a variety of payment methods, including credit and debit cards, bank transfers, and e-wallets. The company also offers a variety of value-added services, such as fraud protection, buyer protection, and merchant services.
– Block Inc ($NYSE:SQ)
Block Inc is a publicly traded company with a market capitalization of $35.21 billion as of 2022. The company has a return on equity of -1.6%. Block Inc is a provider of blockchain technology and services. The company’s platform enables the development, deployment, and management of blockchain applications. Block Inc also offers consulting and advisory services related to blockchain technology.
– OxPay Financial Ltd ($SGX:TVV)
OlympusPay Financial Ltd is a publicly traded company with a market capitalization of 32.55 million as of 2022. The company has a return on equity of 34.32%. OlympusPay Financial Ltd is a provider of financial services including banking, lending, and investment management.
Summary
STONECO LTD has reported its earnings results for the third quarter of their 2023 fiscal year. Total revenue decreased by 31.2% from the same quarter in the prior year, yet the company achieved a net income of 408.8 million BRL compared to -110.9 million BRL in the prior year. This news caused a positive movement in the stock price. Investors should take this into consideration when assessing STONECO LTD as a potential investment.
Analysts should consider the company’s financial performance, industry trends and future prospects when evaluating its investment potential, among other factors. In conclusion, it is worthwhile for investors to further research STONECO LTD to determine if it is a suitable investment for them.
