Will higher year-over-year revenue boost StoneCo (STNE) Q1 earnings? – June 1, 2022
Stone Co Ltd. (STNE – Free Report) is expected to release first quarter 2022 results on June 2, after the closing bell. In the last reported quarter, the company achieved a 100% profit surprise.
The George Town, Cayman Islands-based company is expected to have posted higher revenue year-over-year, thanks to strong customer additions.
StoneCo’s goals are to be the best financial operating system for Brazilian merchants, to offer them the best workflow tool and to help them sell more through multiple channels.
Zacks’ consensus estimate for revenue is pegged at $240 million, indicating growth from the reported figure of $159 million a year ago. The consensus estimate for adjusted earnings per share is set at 6 cents. The company had posted adjusted earnings of 9 cents per share in the prior year quarter.
Our proven model does not conclusively predict an earnings overrun for StoneCo for the first quarter. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. That’s not the case here.
ESP Earnings: The ESP profit, which is the difference between the most accurate estimate and the Zacks consensus estimate, is +50.00%, the former being set at 6 cents per share and the latter at 4 cents. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
Zack’s Ranking: StoneCo has a Zacks rank of #5 (strong sell).
Actions to consider
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The ESP on earnings for Torrid Holdings Inc. (CURVE – Free Report) is +10.00% and it carries a Zacks ranking of 2. Torrid Holdings is expected to release quarterly numbers on June 7.
The ESP on earnings for Smartsheet Inc. (SMAR – Free Report) is +23.08% and it carries a Zacks ranking of 3. Smartsheet is expected to release quarterly numbers on June 7.
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