By Will Feuer
Shares of Brazilian financial-technology company StoneCo Ltd. fell in premarket trading after it reported it swung to a loss in the second quarter.
The company posted a loss of 489.3 million reais ($94.7 million), compared with a profit of BRL526.0 million a year earlier.
The company said the swing to a loss was mostly due to mark-to-market losses from its investment in Banco Inter SA, which hurt profit by BRL527.1 million in the recent quarter and boosted profit by BRL841.2 million a year earlier. Banco Inter's publicly traded parent company, Inter & Co., was hit by a wave of apparently unusual trading activity around the end of the quarter, StoneCo said.
Inter stock fell 26.1% on June 30, and then increased by 31.9% on July 1. StoneCo said its mark to market is based on the value of the investment on June 30.
On a per-share basis, the loss was BRL1.56, compared with a profit of BRL1.72, it said.
Stripping out the effects from the investment in Banco Inter and other one-time items, adjusted earnings came to BRL0.25 a share. Analysts surveyed by FactSet had been looking for adjusted earnings of BRL0.24 a share.
Revenue surged to BRL2.3 billion from BRL613.4 million in the prior-year period, which included a BRL397.2 million negative adjustment in credit fair value. Analysts surveyed by FactSet had been looking for BRL2.2 billion.
The company said Chief Financial Officer Marcelo Baldin will depart the company, and Silvio Jose Morais will take over as interim finance chief. Mr. Morais will temporarily step down as a board member to assume his new duties, the company said. The company said Tatiana Malamud was appointed chief legal officer effective Aug. 1.
Shares of StoneCo fell almost 13% to $10.17 in the premarket session. The stock this year was down almost 31% before Friday's decline.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires