Why StoneCo Stock Surged This Week
(NASDAQ: STNE) stock rose higher this week thanks to better-than-expected quarterly results. The Brazil-based fintech company's share price gained 14.2% across the week's trading, according to data from S&P Global Market Intelligence.
After the market closed on Tuesday, StoneCo published its fourth-quarter results, beating Wall Street's expectations for sales and earnings. The business posted sales of 3.61 billion Brazilian real (roughly $636 million), beating the average analyst estimate's call for sales of 3.58 billion real (roughly $631 million). Non-GAAP (adjusted) earnings per share came in at $0.40, beating the average analyst target by $0.06 per share.
StoneCo's revenue increased roughly 11% year over year in the fourth quarter, and adjusted earnings per share increased roughly 47%. Continued customer additions and an increase in average revenue per user in the financial services unit powered sales growth in the period. Total payment volumes for small and medium-sized business customers using the company's platform rose 22% compared to the prior-year period. The business also continued to rapidly scale its credit business back up in the quarter.
Source Fool.com
StoneCo Ltd Stock
StoneCo Ltd is currently one of the favorites of our community with 12 Buy predictions and no Sell predictions.
With a target price of 16 € there is a hugely positive potential of 62.21% for StoneCo Ltd compared to the current price of 9.86 €.
