-=StoneCo (STNE) reported earnings on Wed 27 May 20 (b/o)

StoneCo reports Q1 results and provides guidance

Co reports Q1 EPS of R 0.58 vs R 0.77 Capital IQ consensus. Total Revenue and Income was R$716.8 million (Capital IQ consensus $698.03 mln)  in the first quarter of 2020, an increase of 33.8% from R$535.8 million in the first quarter of 2019. Total Revenue and Income growth was driven primarily by the 42.1% increase in TPV.

"We expect to see the greatest impact from COVID-19 in the second quarter. Nonetheless, we anticipate our Adjusted Pre-Tax Margin to be positive, at between 20% and 24% in 2Q20. This expected range takes into account the negative effect on Pre-Tax Income of one-off severance expenses related to the reduction in our workforce announced on May 12th, as well as one-off expenses related to temporary incentives we are giving clients in the context of COVID-19."