tiprankstipranks
Market News

StoneCo Reports Strong Quarterly Revenues; Shares Drop

StoneCo Ltd. (STNE), a financial technology and software solutions provider, has posted strong third-quarter 2021 revenues. Meanwhile, shares of the company declined 10.3% in the extended trading session on Tuesday due to lower year-over-year growth in some metrics. 

Results in Detail 

StoneCo’s third-quarter adjusted EPS came in at R$0.46, down 53.7% from R$0.99 per share in the same quarter last year. Adjusted pre-tax income stood at R$128.7 million, down 69.6%.

Total revenues of R$1.47 billion advanced 57.3% from the year-ago period. Additionally, consolidated software revenue was R$315 million, up significantly from R$19 million in the prior-year quarter. (See StoneCo stock charts on TipRanks) 

While the company’s Total Payment Value (TPV) stood at R$75 billion, up 7.6% year-over-year, total Active Payment Clients surged 111.8% to 1.39 million.

Markedly, the TPV growth was driven by both SMBs and micromerchant segments, with SMBs reflecting a rise of 70.3% year-over-year and micromerchants increasing their TPV 22.8x year-over-year. 

The Linx deal closed on July 1, and the company’s software business has gained significant scale and share in the retail software market in Brazil. Together, Linx and StoneCo record a software client base of over 200,000 clients across different verticals and value-added solutions. 

See Top Smart Score Stocks on TipRanks >> 

Wall Street’s Take 

The Street has a Strong Buy consensus rating based on 7 unanimous Buys. The average StoneCo price target of $73.86 implies 133.29% upside potential from current levels. 

Investors’ Holdings 

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on StoneCo with 1.6% of investors maintaining portfolios on TipRanks increasing their exposure to STNE stock over the past 30 days.

Related News: 
Lucid Reports Q3 Results, Orders Rise 
Splunk Drops 18% as CEO Steps Down, Announces Preliminary Fiscal Q3 Results 
Bristol Myers Squibb Presents Data from Phase 2 AXIOMATIC-TKR Study

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More