StoneCo Gears Up to Report Q3 Earnings: What's in the Offing?

StoneCo Ltd. STNE is scheduled to report third-quarter 2025 results on Nov. 6, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and earnings per share (EPS).In the previous quarter, this Grand Cayman-based fintech company reported an EPS of 39 cents, beating the Zacks Consensus Estimate of 36 cents. Results reflected a year-over-year increase in total revenue and income. Total Payments Active Client base reached 4.6 million in the quarter, representing 5.1% sequential growth.Over the preceding four quarters, STNE’s EPS surpassed the consensus estimate on all occasions, the average beat being 11.46%. This is depicted in the graph below: StoneCo Ltd. Price and EPS Surprise StoneCo Ltd. price-eps-surprise | StoneCo Ltd. Quote Factors at Play for StoneCoStoneCo’s third-quarter performance is likely to have benefited from continued momentum in its primary sectors, notably within the financial services and software business.STNE’s robust solutions in the financial services segment, particularly its MSMB (Micro, Small and Medium-sized Businesses) offerings, are likely to have been a key growth driver. With MSMB Total Payment Volume growth and higher take rates, this segment is expected to have delivered decent financial results in the to-be-reported quarter.Strengthening efforts in enhancing its banking solutions for small and medium-sized businesses are expected to have contributed to banking revenues in the quarter to be reported.StoneCo's credit offering through merchants and credit cards has shown significant growth. With low non-performing loan ratios and plans to extend the credit offerings to more clients, STNE is expected to have benefited from the continued expansion of its credit portfolio in the to-be-reported quarter.STNE’s increasing focus on cost management approaches to boost profitability and operational efficiency is likely to have driven significant operating leverage in the to-be-reported quarter.However, StoneCo’s third-quarter performance is likely to have been affected by increased competition from banks to serve Small and Medium Enterprises.Q3 Projections for STNEThe Zacks Consensus Estimate for the quarterly revenues stands at $700.7 million, indicating an increase of 15.7% from the year-ago period’s reported figure.STNE’s activities during the to-be-reported period were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly EPS has been revised upward by 2 cents to 43 cents over the past month. It also suggests a 22.9% increase from the prior-year quarter’s reported figure.What Our Quantitative Model Predicts for STNEOur proven model predicts a surprise in terms of EPS for StoneCo this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an EPS beat, which is exactly the case here.StoneCo currently has an Earnings ESP of +7.81% and sports a Zacks Rank of 1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Other Stocks That Warrant a LookHere are two other stocks from the Zacks Internet-Software industry — Affirm AFRM and Bill Holdings, Inc. BILL — which you may want to consider, as our model shows that these, too, have the right combination of elements to report a surprise this quarter.AFRM, scheduled to report quarterly numbers on Nov. 6, currently has an Earnings ESP of +3.53% and a Zacks Rank of 3.Bill Holdings is slated to report quarterly numbers on Nov. 6. BILL has an Earnings ESP of +0.85% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.  Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneCo Ltd. (STNE): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks