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Why DLocal Stock Is Plunging Wednesday

Benzinga ·  May 15 12:02

DLocal Ltd (NASDAQ:DLO) shares are trading down Wednesday following weaker-than-expected earnings for the first quarter.

What Happened: DLocal reported earnings on Tuesday after the market close. The company turned in GAAP EPS of 6 cents, missing analyst estimates for EPS of 12 cents.

In addition, DLocal reported sales of $184 million, missing analyst estimates of $189.98 million. Revenue was up 34% on a year-over-year basis, but fell 2% quarter-over-quarter.

The company reported $5.3 billion in total payment volume, up 49% year-over-year. DLocal also reported adjusted EBITDA of $37 million, down 19% year-over-year.

Related Link: DLocal, Allogene Therapeutics And Other Big Stocks Moving Lower In Wednesday's Pre-Market Session

DLocal said it's working on delivering on its 2024 guidance, but noted that there is now a "greater likelihood of coming in towards the lower end of the issued ranges."

Following the company's quarterly results, Goldman Sachs maintained DLocal with a Buy rating and lowered the price target from $18 to $16. In addition, Susquehanna maintained a Positive rating on the stock with a price target of $21.

DLO Price Action: DLocal shares are down 24.2% at $10.30 at the time of writing Wednesday, according to Benzinga Pro.

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