On Wednesday, Nu Holdings registered strong financial data in the fiscal third quarter amid improving return on equity.
Its stock price plummeted by -1.26% to $15.64 per share on November 13’s Asian afternoon session. Additionally, it is expected to drop further by -3.77% to $15.05 apiece in the market after hours.
The company’s earnings per share (EPS) settled at $0.11, matching the analysts’ forecast and surpassing the previous $0.10 figure.
In line with this, its revenue surged to $2.94 billion, exceeding the $2.85 billion outlook and data in the last quarter. On a constant currency basis, revenue increased by 56.00% year-over-year (YoY).
At the same time, the Monthly Average Revenue per Active Customer (ARPAC) rose 25.00% YoY to $11.00 on a FX-neutral basis.
Moreover, the net income of Nu Holdings spiked to $553.40 million from $303.00 million in the same period in 2023. Likewise, the adjusted net income jumped from $355.60 million to $592.20 million.
Based on reports, the digital bank incurred gains in profit as it boosted deposits and its Latin America lending business.
According to Chief Executive Officer David Vélez, the corporation’s Mexico and Columbia expansions continue to render positive results. He added that Nu Holdings is preparing to provide more than financial services.
Jefferies Retains Buy Rating on Nu Holdings
As revealed by recent news, Jefferies Group maintained its Buy rating on Nu Holdings, which is also known as Nubank.
Furthermore, the investment banking company enhanced its price target for the Sao Paulo-based digital bank. Its latest projected value from Jefferies is $18.90, showing an improved growth forecast through 2030.
In connection with this, the advancements of Nubank were highlighted by its earnings in the second quarter. It also achieved 5.20 million new customers, recording 104.50 million in total.
Meanwhile, Bank of America Securities changed its price target to $15.00 for Nu Holdings.
