Net income for Q2 rose 28% year-over-year, with diluted EPS at $0.18 vs $0.14
Company raised full-year TPV and gross profit growth guidance, maintained operating profit guidance
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for DLocal Limited is $18.50, about 29.6% above its August 12 closing price of $14.28
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago
Result drivers and key details
- Co said 92% year-over-year increase in total payment volume was driven by investments in platform and licenses, and strong merchant activity in emerging markets
Brazil and Argentina - Gross profit growth supported by ramp-up of ride-hailing and travel merchants in Brazil and broad-based growth in Argentina, including lower advancement costs
Margin pressure - Gross profit margin declined due to higher local-to-local share, large merchants reaching higher volume pricing tiers in Mexico, and lower contribution from higher FX spread markets in Africa and Asia
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