By Connor Hart

Shares of StoneCo climbed after the company logged higher-than-expected adjusted earnings in the fourth quarter.

The stock was trading 13% higher at $11.16 midday Wednesday. Shares, which are on pace for their largest percent increase in more than two years, have surged 40% so far this year, despite having lost one-third of their value in the past 52 weeks.

The fintech company after the bell Tuesday posted a net loss of 2.9 million Brazilian reais ($517 million), or BRL9.98 a share, which included a BRL3.6 million impairment charge related to its software business unit. A year earlier, the company reported a profit of BRL656.2 million, or BRL2.10 a share.

Adjusted per-share earnings came in at BRL2.26, topping the BRL1.96 that analysts polled by FactSet had modeled.

Revenue increased 7.5% to BRL3.6 million, in line with analyst expectations.

Chief Executive Pedro Zinner said the company made progress across its three strategic priorities--gaining share in the micro-, small- and medium-business markets, improving client engagement and scaling platform growth--despite market challenges.

"Moving forward, our goal remains clear: Maximizing long-term intrinsic business value growth measured on a per-share basis rather than merely emphasizing overall company size or scale," he said on a call with analysts. "As we conclude 2024 and enter 2025, we recognize potential macroeconomic challenges, but remain firmly committed to delivering sustainable long-term value creation."

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 19, 2025 12:35 ET (16:35 GMT)

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