Lufax (NYSE:LU) Issues Earnings Results, Misses Estimates By $1.12 EPS

Lufax (NYSE:LU) announced its earnings results on Tuesday. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.08 by ($1.12), FiscalAI reports. The firm had revenue of $916.61 million for the quarter, compared to analyst estimates of $2.22 billion.

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

• Reporting and governance have been restored: Lufax completed audits through 2025, brought SEC filings current, regained NYSE listing compliance, strengthened internal controls, and appointed a Chief Compliance Officer. Hong Kong-listed ordinary shares, however, remain suspended pending further discussions with the exchange.
• Total new loan sales rose 4.6% year over year to RMB 51.1 billion, led by a 27.6% increase in consumer finance loans. This was offset by a 13.5% decline in outstanding balances and a 15.5% drop in total income as small-business demand remained weak.
• Asset quality improved sequentially: The CM3 flow rate declined to 1.0% from 1.2%, the non-consumer-finance 30+ delinquency rate fell to 5.8%, and consumer-finance NPLs improved to 1.3%. Management expects the improvement to continue in the second half of 2026, though credit costs remain elevated.
• Lufax remained loss-making as weak small-business conditions, elevated credit costs, interest-rate compression, and tighter rules limiting high-priced lending weighed on profitability. Management acknowledged near-term pressure on both growth and margins.
• Over the next two to three years, Lufax plans to emphasize lower-risk customers, expand consumer finance as a second growth engine, revive small-business lending through industry- and region-specific products, and use AI to reduce acquisition, risk-control, collection, and operating costs.

Lufax Price Performance

NYSE:LU opened at $1.47 on Thursday. Lufax has a 12 month low of $1.20 and a 12 month high of $4.57. The business’s 50-day moving average is $1.41 and its two-hundred day moving average is $1.86. The firm has a market capitalization of $1.27 billion, a PE ratio of -1.88 and a beta of 0.81.

Analysts Set New Price Targets

LU has been the topic of several analyst reports. Wall Street Zen raised shares of Lufax from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. JPMorgan Chase & Co. upgraded Lufax from a “neutral” rating to an “overweight” rating and set a $2.00 target price on the stock in a research report on Tuesday, July 28th. Weiss Ratings reissued a “sell (d)” rating on shares of Lufax in a research note on Thursday, August 13th. Finally, Zacks Research lowered Lufax from a “hold” rating to a “strong sell” rating in a research note on Thursday, July 30th. One research analyst has rated the stock with a Buy rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $2.00.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Amundi boosted its position in Lufax by 76.8% in the 1st quarter. Amundi now owns 97,223 shares of the company’s stock valued at $282,000 after buying an additional 42,236 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Lufax by 32.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 604,823 shares of the company’s stock valued at $1,796,000 after acquiring an additional 148,724 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Lufax by 0.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,343,505 shares of the company’s stock worth $3,990,000 after buying an additional 8,236 shares during the last quarter. Geode Capital Management LLC boosted its stake in Lufax by 3.9% in the second quarter. Geode Capital Management LLC now owns 143,238 shares of the company’s stock valued at $400,000 after acquiring an additional 5,417 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in Lufax by 74.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 110,024 shares of the company’s stock valued at $307,000 after purchasing an additional 47,001 shares during the period. 69.14% of the stock is currently owned by hedge funds and other institutional investors.

About Lufax

Lufax (NYSE: LU) is a leading provider of online wealth management and personal finance services in China. Established in 2011 as a spin-off from Ping An Insurance (Group) Company of China, Lufax has developed a digital ecosystem designed to match retail and institutional investors with a diverse array of financial products. The company went public on the New York Stock Exchange in October 2020, underscoring its ambition to expand beyond its domestic market.

The firm’s core business activities include peer-to-peer lending, consumer finance, supply chain and small-business lending, as well as online asset management.