Shares of StoneCo Ltd (NASDAQ: STNE) surged 10.96% in a remarkable 24-hour rally on Wednesday, as investors cheered the Brazilian fintech company's strong fourth-quarter 2024 financial results and optimistic forecast for 2025.

The company reported an adjusted net profit of 665.6 million reais ($133 million) for Q4 2024, significantly surpassing the analyst consensus estimate of 585.1 million reais. StoneCo's quarterly earnings per share reached R$2.26 ($0.45), beating expectations of R$1.95 by 15.9% and representing a substantial 25.56% increase compared to the same period last year. Total revenue and income for the quarter stood at 3.6 billion reais ($720 million), slightly above the forecasted 3.591 billion reais, marking an 11.10% year-over-year growth.

Adding to the positive sentiment, StoneCo provided an upbeat outlook for 2025, further fueling investor enthusiasm. The company anticipates its 2025 adjusted basic earnings per share to exceed 8.6 reais ($1.72) and expects adjusted gross profit to surpass 7.05 billion reais ($1.41 billion). These forward-looking statements signal management's confidence in StoneCo's continued growth and profitability, which appears to have resonated strongly with investors.

Analysts reacted positively to the results, with many highlighting the company's ability to outperform expectations in a challenging economic environment. The strong performance in both the core payments business and the banking segment, coupled with the positive guidance, suggests that StoneCo is well-positioned to capitalize on the expanding fintech market in Brazil.

As StoneCo continues to solidify its position as a leading financial technology provider in Brazil, investors appear optimistic about the company's future prospects and its ability to navigate potential macroeconomic challenges while driving sustainable growth.