DLocal Stock Soars After Q1 Revenue Beat, Dividend Launch: Retail Expects Bigger Share Price Move
Synopsis
The payments firm’s board also approved a special cash dividend and expects to spend about $150 million on it.
DLocal (DLO) stock jumped 19.2% in extended trading on Wednesday after the company’s first-quarter revenue topped Wall Street’s estimates.
The Uruguayan payments firm reported quarterly revenue of $216.8 million for the quarter ended March 31, while analysts expected it to post $209.9 million in revenue, according to FinChat data.
DLocal’s net quarterly income rose to $46.7 million, or $0.15 per share, compared with $17.7 million, or $0.06 per share, a year earlier, aided by a positive non-cash mark-to-market effect related to its Argentine bond investments and lower finance costs.
Its total payment volume jumped 53% to a record $8.1 billion during the first quarter.
DLocal said that the rise was driven by sustained expansion in cross-border payment volumes in Chile, Pakistan, Nigeria, Turkey, and Brazil, as well as robust growth from sectors such as remittances, commerce, financial services, and streaming.
The payments firm’s board also approved a dividend payment policy and a special cash dividend. It expects to spend about $150 million on the one-off dividend.
The company said that under its dividend policy, it would pay an annual dividend equal to 30% of its free cash flow. It decided not to opt for a buyback, which would have placed further liquidity constraints on trading volumes.
The first dividend under its policy would be payable in 2026 based on the company’s free cash flow performance.
“The ongoing discussion around tariffs and the fragmentation of traditional trade models are creating opportunities for both emerging markets and for Delocal,” CEO Pedro Arnt said on a call with analysts.
Retail sentiment on Stocktwits was in the ‘extremely bullish’ (92/100) territory, while retail chatter was ‘extremely high.’
One user said that it is an “imminent $15 stock.”
“The market will inevitably re-rate given the growth and distributable cash flow,” another user said about the stock.
DLocal stock has fallen 10.3% year to date (YTD).
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.