NU (NYSE:NU) Issues Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• NU reported EPS of $0.22, missing analyst estimates by $0.01, while quarterly revenue of $6.26 billion topped the $5.96 billion consensus. Gross revenue rose 37% year over year to a record, and net income increased 31% to $1.1 billion.
• The credit portfolio grew 33% to $41.6 billion, but the 90-plus-day delinquency ratio rose to 7.3% from 6.9%; management cited portfolio mix and deliberate risk expansion.
• NU lowered its full-year efficiency-ratio outlook to 19%–19.5% from about 20%, citing lower-than-expected expenses, though it expects the ratio to rise sequentially in Q4 as spending and hiring increase.

NU (NYSE:NU - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.23 by ($0.01), FiscalAI reports. The business had revenue of $6.26 billion during the quarter, compared to analyst estimates of $5.96 billion. NU had a net margin of 18.65% and a return on equity of 31.59%.

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

• Nu reported record gross revenue of $6.3 billion, up 37% year over year, and record net income of $1.1 billion, up 31%, with a 32% return on equity. It ended the quarter with 143 million customers and an activity rate of 83.6%.
• The credit portfolio grew 33% year over year to $41.6 billion, and recurring risk-adjusted NIM rose to 12.7% excluding one-off items. However, the 90-plus-day delinquency ratio increased to 7.3% from 6.9%, which management attributed partly to portfolio mix and deliberate risk expansion.
• Management lowered its full-year efficiency-ratio outlook to 19%–19.5%, from around 20%, after expenses came in below expectations. It expects the ratio to rise sequentially in Q4 as deferred spending and hiring pick up.
• Growth continued in Mexico and Colombia, while Nu launched U.S. and global account offerings; executives said investment in the new initiatives will be gated by product-market fit, unit economics, and regulatory milestones. The company expects Nu US and Nu Global together to remain within a 100-basis-point efficiency-ratio impact in each of 2026 and 2027.

NU Stock Performance

NU traded down $0.47 during trading on Thursday, hitting $11.85. 59,466,287 shares of the stock were exchanged, compared to its average volume of 85,730,176. The firm has a market capitalization of $57.52 billion, a P/E ratio of 16.00, a PEG ratio of 0.51 and a beta of 0.97. NU has a 1-year low of $11.20 and a 1-year high of $18.98. The stock has a fifty day moving average price of $13.88 and a two-hundred day moving average price of $14.28. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.35.

Insider Buying and Selling

In other news, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $15.81, for a total value of $3,505,187.67. Following the completion of the sale, the insider directly owned 979,446 shares of the company's stock, valued at approximately $15,485,041.26. This represents a 18.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Cristina Junqueira sold 25,000 shares of the stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $15.01, for a total value of $375,250.00. Following the completion of the sale, the chief executive officer directly owned 4,877,593 shares of the company's stock, valued at $73,212,670.93. The trade was a 0.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 386,707 shares of company stock valued at $6,001,588. 1.20% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of research firms have weighed in on NU. UBS Group raised their price objective on shares of NU from $18.20 to $20.50 and gave the stock a "buy" rating in a report on Tuesday, October 20th. Needham & Company LLC restated a "buy" rating and issued a $19.00 target price on shares of NU in a report on Monday, September 28th. Wolfe Research dropped their target price on shares of NU from $18.00 to $17.00 and set an "outperform" rating on the stock in a research report on Tuesday, August 25th. Monness Crespi & Hardt began coverage on shares of NU in a research report on Monday, October 26th. They issued a "buy" rating and a $20.00 target price on the stock. Finally, Weiss Ratings upgraded shares of NU from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday. Ten investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $18.25.

NU Company Profile

Nu Holdings Ltd., which operates under the Nubank brand, is a digital financial services company founded in Brazil in 2013. It provides banking and related services through mobile apps and other digital channels, with a focus on simplifying access to financial products. Its offerings include digital accounts, payment cards, credit products, personal loans, and investment services. The company also provides services to small businesses, with products and availability varying by country. Nu serves customers in Brazil, Mexico, and Colombia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.