DLocal’s earnings topped analysts’ estimates and the payments platform named a co-CEO.
Timon Schneider/Dreamstime.com
Shares of
DLocal
were rising sharply after the payments platform posted strong second-quarter earnings and named a new co-chief executive.
DLocal
(ticker: DLO) reported earnings of 15 cents a share, rising from the year-ago quarter and beating Wall Street’s call for 13 cents. Revenue for the period was $161.1 million, also rising from a year earlier and beating expectations of $149.4 million. DLocal also reaffirmed full-year guidance.
The company also announced it has appointed Pedro Arnt— who most recently spent 12 years as chief financial officer at
MercadoLibre
(MELI)—as co-CEO and member of the board, effective immediately. He will serve alongside co-chief CEO Sebastián Kanovich.
Analysts at Susquehanna maintained their Positive rating on the stock and lifted their price target to $24 from $18. They also raised their earnings and revenue estimates for DLocal for this year.
The second-quarter numbers were good, they wrote, but it was the leadership news that got their attention. “It certainly wasn’t as if Pedro needed a job, so his presence here should help abate concerns about DLO governance,” the analysts wrote, adding that they “are encouraged by the improved fundamentals and the talent at the top.”
The stock was rising 39% to $21.47 on Wednesday. The company went public in June 2021.
Write to Emily Dattilo at [email protected]
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