Qfin (NASDAQ:QFIN) Issues Earnings Results, Beats Estimates By $0.08 EPS

Qfin (NASDAQ:QFIN) issued its quarterly earnings results on Tuesday. The company reported $1.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.08, Zacks reports. Qfin had a net margin of 31.13% and a return on equity of 24.97%. The company had revenue of $567.01 million during the quarter, compared to the consensus estimate of $476.92 million.

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

• Qfin reported weaker Q1 results as total revenue fell to CNY 3.91 billion and non-GAAP net income declined 11.6% sequentially to about CNY 950 million, reflecting softer industry demand and continued pricing pressure.
• Management highlighted a meaningful improvement in credit quality, with FPD7 down about 20% sequentially and the C2M2 delinquency metric improving 17% to 0.8%, which they said largely met their risk-optimization targets.
• The company is benefiting from a shift toward higher-quality borrowers, with marketing spend on that segment up roughly 40% sequentially and customer acquisition costs down 17% overall as it prioritizes long-term user lifetime value over pure volume growth.
• Funding conditions remain tight, but Qfin reduced funding costs by about 10 basis points by increasing ABS usage, while still maintaining a cautious approach to leverage and capital allocation.
• The tech solutions business continued to scale quickly, with loan volume enabled by the platform reaching CNY 9.96 billion, up sevenfold year over year, and management said AI tools are becoming a bigger part of operations and future growth.

Qfin Stock Performance

QFIN stock traded up $3.15 during trading on Wednesday, hitting $15.74. The company had a trading volume of 7,348,767 shares, compared to its average volume of 1,501,948. The firm has a market cap of $2.23 billion, a PE ratio of 2.56, a price-to-earnings-growth ratio of 0.22 and a beta of 0.54. The company has a quick ratio of 2.43, a current ratio of 2.43 and a debt-to-equity ratio of 0.07. The firm has a 50-day moving average price of $13.18 and a 200-day moving average price of $16.15. Qfin has a 1-year low of $11.31 and a 1-year high of $46.18.

Qfin Announces Dividend

The business also recently declared a dividend, which was paid on Thursday, May 14th. Investors of record on Wednesday, April 22nd were issued a dividend of $0.78 per share. The ex-dividend date of this dividend was Wednesday, April 22nd. This represents a dividend yield of 1,176.0%. Qfin’s dividend payout ratio (DPR) is currently 25.00%.

Insider Buying and Selling

In other news, Director Xiaohuan Chen purchased 190,000 shares of the company’s stock in a transaction dated Friday, March 27th. The shares were acquired at an average cost of $12.89 per share, for a total transaction of $2,449,100.00. Following the completion of the purchase, the director directly owned 190,000 shares in the company, valued at $2,449,100. The trade was a ? increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 17.10% of the company’s stock.

Institutional Investors Weigh In On Qfin

A number of institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC acquired a new position in Qfin during the 4th quarter worth approximately $202,000. XTX Topco Ltd boosted its position in shares of Qfin by 123.8% during the 4th quarter. XTX Topco Ltd now owns 37,511 shares of the company’s stock worth $723,000 after purchasing an additional 20,747 shares in the last quarter. Voloridge Investment Management LLC increased its holdings in Qfin by 124.1% in the fourth quarter. Voloridge Investment Management LLC now owns 1,163,392 shares of the company’s stock valued at $22,419,000 after buying an additional 644,171 shares in the last quarter. Quadrature Capital Ltd purchased a new position in Qfin in the fourth quarter valued at about $466,000. Finally, Engineers Gate Manager LP acquired a new stake in shares of Qfin during the 4th quarter valued at approximately $2,281,000. Hedge funds and other institutional investors own 74.81% of the company’s stock.

Analyst Ratings Changes

QFIN has been the subject of a number of research analyst reports. Weiss Ratings cut Qfin from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, April 6th. Jefferies Financial Group cut their price target on Qfin from $30.30 to $23.40 and set a “buy” rating on the stock in a research report on Wednesday, March 18th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $22.20.

Qfin Company Profile

360 DigiTech, Inc (NASDAQ: QFIN) is a China?based fintech company that specializes in providing digital lending solutions to underserved consumer and small business markets. Leveraging proprietary credit assessment technologies and big data analytics, the company connects borrowers with a network of financial institutions and investors through its online platform. Its services encompass unsecured consumer loans, installment credit products, and working capital financing for micro and small enterprises.

The company’s flagship platform offers an end?to?end digital lending experience, from application and credit evaluation to disbursement and repayment.