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XP soars in NY after result and increase in share buyback program

XP Inc shares. soared in New York this Wednesday (8), after the investment platform reported adjusted profit from July to September of R$1.15 billion, up 11% over a year earlier, as well as announcing an increase of R$1 billion in its share buyback program.

XP also announced the discontinuation of the adjusted net margin projection, from 24% to 30% of net revenue, replacing it with an estimate of profit margin before taxes (EBT), in the range of 26% to 32% of revenue for 2023 to 2025

In the third quarter, this index was 27.2%, down 1.4 points.

At 12:40, the stock was up 9.3% at $20.05. On B3, XP’s BDRs advanced 9.96%, at R$104.46.

“XP delivered resilient results despite the challenging environment, with revenue, EBITDA and net income above expectations,” said Morgan Stanley analysts.

Jorge Kuri and team assessed that the conference call comments were primarily positive about the company’s ability to navigate an extremely challenging market environment, although management acknowledged that recovery is not imminent and could be gradual.

For analysts at Goldman Sachs, it was a solid quarter. As well as the rise in share buybacks, Tito Labarta and team also highlighted XP’s significant increase in transparency by breaking down retail revenues by segment, including equities and fixed income, which should be well received by the market.

Source: CNN Brasil

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