NU (NYSE:NU) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

NU (NYSE:NU) posted its quarterly earnings results on Thursday. The company reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.20 by $0.02, FiscalAI reports. NU had a return on equity of 30.91% and a net margin of 18.20%.The business had revenue of $5.88 billion during the quarter, compared to analyst estimates of $5.39 billion.

Here are the key takeaways from NU’s conference call:

• Nu Holdings surpassed $1 billion in quarterly net income for the first time, reaching $1.1 billion, up 49% year over year, with a 33% return on equity. Gross revenue rose 39% to nearly $5.9 billion, while the customer base reached 139 million.
• Mexico received regulatory approval for Nu’s banking license, allowing the company to offer payroll deposits, higher-insured deposits, and broader credit products to its 16 million-plus customers. Management sees Mexico as a potentially very large opportunity, with faster monetization and lower cost-to-serve than Brazil.
• Risk-adjusted net interest margin expanded to a record 12.4%, helped by strong loan growth, a more unsecured-loan-weighted mix, lower credit costs, and balance-sheet optimization. Management said it expects margins to remain in the current range, while cautioning that 12.4% is not a floor.
• The credit portfolio grew 37% year over year to $39.4 billion, and management reported no broad-based weakening in consumer credit, citing 244% coverage of 90-plus-day delinquencies. However, 90-plus-day delinquency increased 35 basis points sequentially to 6.9%, with executives attributing the broader upward trend primarily to portfolio mix and seasonality.
• Nu is expanding monetization through new customer segments and technology, including the Chroma subscription tier for “super core” Brazilian customers, SME products, and its nuFormer AI platform. AI is already used across underwriting, support, marketing, and product decisions, while operating expenses are expected to preserve long-term leverage with a full-year efficiency ratio near 20%.

NU Trading Up 2.7%

NU traded up $0.36 during trading hours on Thursday, reaching $13.92. The company’s stock had a trading volume of 63,854,379 shares, compared to its average volume of 60,711,484. The stock has a market cap of $67.60 billion, a PE ratio of 21.42, a P/E/G ratio of 0.55 and a beta of 0.94. NU has a fifty-two week low of $11.20 and a fifty-two week high of $18.98. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.58 and a quick ratio of 0.58. The business’s 50-day moving average is $13.41 and its 200-day moving average is $14.40.

Insider Transactions at NU

In other NU news, Director Anita M. Sands sold 21,000 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $12.24, for a total transaction of $257,040.00. Following the completion of the sale, the director owned 162,150 shares of the company’s stock, valued at $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NU

A number of hedge funds have recently modified their holdings of the business. Parallel Advisors LLC grew its stake in NU by 3.7% in the 4th quarter. Parallel Advisors LLC now owns 16,820 shares of the company’s stock valued at $282,000 after acquiring an additional 601 shares during the last quarter. Aptus Capital Advisors LLC raised its position in NU by 3.4% during the fourth quarter. Aptus Capital Advisors LLC now owns 19,008 shares of the company’s stock worth $318,000 after acquiring an additional 624 shares during the last quarter. Polymer Capital Management US LLC lifted its holdings in shares of NU by 5.7% in the fourth quarter. Polymer Capital Management US LLC now owns 16,892 shares of the company’s stock valued at $283,000 after purchasing an additional 904 shares in the last quarter. United Capital Financial Advisors LLC lifted its holdings in shares of NU by 7.3% in the third quarter. United Capital Financial Advisors LLC now owns 13,629 shares of the company’s stock valued at $218,000 after purchasing an additional 929 shares in the last quarter. Finally, Williams Jones Wealth Management LLC. grew its position in shares of NU by 2.0% in the fourth quarter. Williams Jones Wealth Management LLC. now owns 50,755 shares of the company’s stock valued at $850,000 after purchasing an additional 1,005 shares during the last quarter. 84.02% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on NU. Weiss Ratings reiterated a “hold (c+)” rating on shares of NU in a research report on Friday, August 7th. Needham & Company LLC initiated coverage on NU in a research note on Friday, June 26th. They issued a “buy” rating and a $17.00 target price for the company. Scotiabank lowered NU to a “sector perform” rating and set a $13.00 price target on the stock. in a report on Wednesday, June 3rd. Susquehanna cut shares of NU from a “positive” rating to a “neutral” rating and lowered their price target for the company from $18.00 to $13.00 in a research report on Wednesday, June 3rd. Finally, Bank of America reissued an “underperform” rating on shares of NU in a research report on Tuesday, June 2nd. Ten equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, NU presently has a consensus rating of “Moderate Buy” and a consensus price target of $17.24.

NU declared that its board has approved a share repurchase plan on Thursday, June 4th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board believes its stock is undervalued.

NU Company Profile

Nu Holdings Ltd (NYSE: NU), commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.

Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.