Shares of StoneCo Ltd (NASDAQ: STNE) surged 8.53% in after-hours trading on Tuesday following the release of its fourth-quarter 2024 financial results and optimistic projections for 2025. The Brazilian fintech company significantly outperformed analyst expectations, showcasing robust growth and improved profitability.

StoneCo reported an adjusted net profit of 665.6 million reais for Q4 2024, surpassing the consensus estimate of 585.1 million reais. The company's quarterly earnings per share reached $2.26, beating analyst expectations of $1.95 by 15.9%. This represents 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, slightly above the forecasted 3.591 billion reais, marking an 11.10% year-over-year growth.

Looking ahead, 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, while projecting adjusted gross profit to surpass 7.05 billion reais. These forward-looking statements suggest continued strong performance and growth potential, which likely contributed to the significant after-hours stock price increase. 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 ability to capitalize on the growing digital payments market.