StoneCo Ltd – Ordinary Shares – Class A Set to Unveil Q2 Earnings: A Deep Dive into the Numbers and Analyst Expectations

☀️Introduction:

StoneCo Ltd – Ordinary Shares – Class A, a leading fintech company, is all set to unveil its highly anticipated Q2 earnings results. As investors eagerly await this key financial update, there are several factors to consider. In this article, we will delve into fundamental and technical analysis, historical guidance, and analysts’ estimates to provide a comprehensive overview of what to expect from this earnings call.

Fundamental Analysis:

	ReportDate	NetIncome	TotalRevenue	DilutedEPS	unit
Q2	2023-06-30	305.4	2760.0	0.90	million BRL
Q1	2023-03-31	226.6	2553.2	0.70	million BRL
Q4	2022-12-31	78.8	2574.0	0.25	million BRL
Q3	2022-09-30	-110.9	4292.6	0.62	million BRL
Q2	2022-06-30	-800.6	4086.5	-2.57	million BRL

1. Historical Financials:

Looking at StoneCo’s past year financials, we see a positive trajectory. Net income has steadily increased from -$800.6 million in Q2 2022 to $305.4 million in Q2 2023. This remarkable improvement underscores the company’s strong recovery and ability to generate sustainable profits.

2. Diluted EPS:

StoneCo’s diluted EPS has also shown a favorable trend. From a loss of -$2.57 in Q2 2022, the company rebounded significantly to reach $0.90 in Q2 2023. This indicates a substantial improvement in profitability and underscores the effectiveness of the company’s growth strategies.

3. Total Revenue:

Total revenue for StoneCo has experienced consistent growth over the past year, reaching $2,760 million in Q2 2023 from $4,086.5 million in Q2 2022. This upward trajectory showcases the company’s ability to capture market share and capitalize on emerging opportunities.

Technical Analysis:

	since	low	high	change	change%
1D	2023-08-25	11.6	12.4	0.4	3.0
5D	2023-08-21	11.6	12.7	-0.2	-1.3
1M	2023-07-27	11.6	14.8	-1.1	-8.1
3M	2023-05-30	11.1	14.8	-0.3	-2.6

1. Price Performance:

StoneCo’s shares have seen notable price fluctuations over the past three months. While there was a recent dip in the stock price, it is essential to note that the one-day change on August 25th was positive at 3.0%, which may indicate positive market sentiment leading up to the earnings call.

2. Price Range:

StoneCo shares experienced a wide price range of $11.1 to $14.8 over the last three months. This volatility could provide an opportunity for investors looking to capitalize on short-term fluctuations.

Historical Guidance:

StoneCo’s past performance suggests a positive outlook for the upcoming earnings call. The company has consistently exceeded earnings estimates, with an adjusted EPS estimate of 0.17 for the current quarter. This steady historical guidance instills confidence in investors and indicates that StoneCo has a track record of outperforming analyst expectations.

Analysts’ Estimates:

1. Consensus Estimate:

The MorningStar consensus estimates have remained unchanged for StoneCo, with an adjusted EPS estimate of 0.17 for this quarter. The fact that estimates have not changed in the past 90 days suggests a level of confidence and stability in the company’s financial performance.

2. Analyst Recommendations:

StoneCo has received positive analyst recommendations, further bolstering optimism surrounding the earnings call. Analysts have highlighted the company’s ability to innovate and adapt to the evolving fintech landscape, positioning it for further growth and success.

Conclusion:

As StoneCo Ltd – Ordinary Shares – Class A prepares to release its Q2 earnings results, investors have reason to be excited. The fundamental analysis reveals a steady increase in net income, improved diluted EPS, and consistent growth in total revenue. Technical analysis shows minor price fluctuations but positive one-day change prior to the earnings call.

Historical guidance points to StoneCo’s track record of exceeding earnings estimates, while analysts’ estimates remain stable at an adjusted EPS estimate of 0.17. This consensus reflects the confidence the market has in StoneCo’s ability to deliver strong financial results once again.

Investors and stakeholders should keep a close eye on StoneCo’s earnings call, as it may provide valuable insights into the company’s performance, growth strategies, and future prospects. StoneCo’s ability to navigate the fintech landscape and adapt to changing market dynamics positions it as an industry leader, making its earnings call one not to be missed.