Shares of DLocal are experiencing a significant surge following the release of their impressive second-quarter earnings report. The payments platform has also announced the appointment of a new co-chief executive.
DLocal (ticker: DLO) has reported earnings of 15 cents per share for the quarter, surpassing Wall Street's expectations of 13 cents and showing growth compared to the same period last year. Additionally, the company's revenue for the quarter reached $161.1 million, exceeding both analysts' estimates of $149.4 million and their own previous year's performance. DLocal has also reaffirmed its full-year guidance.
In a notable move, DLocal has appointed Pedro Arnt as co-CEO and board member, effective immediately. Arnt, who previously held the position of chief financial officer at MercadoLibre (MELI) for 12 years, joins co-CEO Sebastián Kanovich in leading the company.
Susquehanna analysts have maintained their positive rating on DLocal's stock and raised their price target from $18 to $24. They have also increased their earnings and revenue forecasts for the company for the current year.
While impressed by the strong second-quarter numbers, the analysts highlight the leadership news as particularly noteworthy. They note that Pedro Arnt's decision to join DLocal, despite not necessarily needing a job, brings confidence to concerns regarding the company's governance. The analysts express their encouragement towards the improved fundamentals and the talented leadership at the top.
In premarket trading, DLocal's stock has shown a 29% surge, climbing to $20.05. The company recently went public in June 2021.