NU (NYSE:NU) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

NU (NYSE:NU) posted its quarterly earnings data on Thursday. The company reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.01), FiscalAI reports. The company had revenue of $6.26 billion for the quarter, compared to the consensus estimate of $5.96 billion. NU had a return on equity of 31.59% and a net margin of 18.65%.

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 Down 3.9%

Shares of NYSE NU traded down $0.47 during trading hours on Thursday, hitting $11.85. The company had a trading volume of 59,466,287 shares, compared to its average volume of 85,730,176. NU has a 1-year low of $11.20 and a 1-year high of $18.98. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.35. The firm’s 50 day moving average is $13.88 and its 200-day moving average is $14.28. The stock has a market capitalization of $57.52 billion, a P/E ratio of 16.01, a price-to-earnings-growth ratio of 0.51 and a beta of 0.97.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Monness Crespi & Hardt initiated coverage on shares of NU in a research report on Monday, October 26th. They issued a “buy” rating and a $20.00 price target on the stock. UBS Group boosted their target price on NU from $18.20 to $20.50 and gave the stock a “buy” rating in a research report on Tuesday, October 20th. JPMorgan Chase & Co. raised their price objective on NU from $20.00 to $23.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 6th. Susquehanna boosted their price objective on NU from $13.00 to $16.00 and gave the company a “neutral” rating in a research report on Friday, August 14th. Finally, Weiss Ratings upgraded NU from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday. Ten analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $18.25.

Trending Headlines about NU

Investors following NU have been watching these headlines:

• Positive Sentiment: Nu reported Q3 revenue of $6.26 billion, above analyst estimates of $5.96 billion. Zacks said earnings of $0.22 per share matched its consensus estimate, while another comparison put EPS one cent below expectations. Nu Holdings Q3 revenue beats as it embarks on global expansion
• Positive Sentiment: The company’s Q3 announcement highlighted its global expansion, potentially providing a longer-term growth opportunity, though the reports supplied limited detail. Nu Holdings Q3 financial results
• Negative Sentiment: Some coverage compared the $0.22 EPS result with a $0.23 estimate, indicating a slight earnings miss. Investors may also be weighing concerns about rising delinquencies discussed in pre-earnings commentary. Nu Holdings quarterly earnings results Nu Holdings earnings preview on delinquencies

Insiders Place Their Bets

In other NU news, CEO Cristina Junqueira sold 65,000 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $14.71, for a total value of $956,150.00. Following the completion of the sale, the chief executive officer owned 2,542,083 shares in the company, valued at $37,394,040.93. This trade represents a 2.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Henrique Camossa Sald Fragelli sold 221,707 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $15.81, for a total transaction of $3,505,187.67. Following the completion of the sale, the insider owned 979,446 shares of the company’s stock, valued at approximately $15,485,041.26. This represents a 18.46% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 386,707 shares of company stock worth $6,001,588. 1.20% of the stock is owned by corporate insiders.

About NU

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.