NU (NYSE:NU) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

NU (NYSE:NU) posted its earnings results on Wednesday. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.18 by $0.01, Zacks reports. NU had a net margin of 17.97% and a return on equity of 30.12%. The firm had revenue of $4.86 billion during the quarter, compared to analysts’ expectations of $4.55 billion.

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

• Nu delivered strong scale and profitability in Q4 — 131 million customers (+17M), ARPAC of $15, revenues of $4.9 billion (+45% YoY), net income of $895 million and a record 33% ROE.
• AI and international expansion are strategic priorities — the foundation model nuFormer is in production for credit decisioning, Pix with AI surpassed 10M MAUs, and Nu received conditional OCC approval for a U.S. national bank charter, positioning the firm to scale beyond Latin America.
• The company introduced a new Managerial P&L and reporting framework (reconciled to IFRS and backfilled to 2021) to show internal economics and comparability, but these managerial measures are not IFRS and may affect cross-company comparisons.
• While the efficiency ratio improved to 19.9% under the new methodology, management expects near-term upward pressure from deliberate investments (return-to-office provisions ~80–100 bps impact, AI/R&D hiring, and U.S. buildout) plus one-off items (Prosofipo ~$25M, return-to-office ~$22M) that could weigh on margins.
• Capital and liquidity remain strong with total capital of $8.9 billion (about $3.0B at holding level) and available funding of ~$38.8B (~2x net credit portfolio), giving headroom to scale credit and fund growth initiatives.

NU Stock Performance

Shares of NU stock opened at $16.62 on Thursday. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.56 and a quick ratio of 0.56. The firm has a market cap of $80.09 billion, a price-to-earnings ratio of 32.59, a price-to-earnings-growth ratio of 0.54 and a beta of 1.08. NU has a one year low of $9.01 and a one year high of $18.98. The stock’s 50-day moving average is $17.19 and its 200-day moving average is $16.09.

Institutional Trading of NU

Hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd grew its stake in NU by 14,810.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,491 shares of the company’s stock worth $25,000 after purchasing an additional 1,481 shares during the period. Zions Bancorporation National Association UT purchased a new position in NU during the 4th quarter worth $27,000. Hollencrest Capital Management bought a new stake in NU in the 4th quarter worth about $33,000. Brown Brothers Harriman & Co. lifted its holdings in NU by 61.4% during the fourth quarter. Brown Brothers Harriman & Co. now owns 3,260 shares of the company’s stock worth $55,000 after acquiring an additional 1,240 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of NU by 63.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,768 shares of the company’s stock worth $52,000 after buying an additional 1,464 shares during the last quarter. Institutional investors own 84.02% of the company’s stock.

Analysts Set New Price Targets

Several analysts have commented on NU shares. KeyCorp boosted their target price on shares of NU from $15.00 to $19.00 and gave the stock an “overweight” rating in a research report on Friday, November 14th. JPMorgan Chase & Co. lifted their price target on shares of NU from $17.00 to $18.00 and gave the company an “overweight” rating in a research report on Thursday, November 20th. Weiss Ratings upgraded shares of NU from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, February 18th. Itau BBA Securities reissued an “outperform” rating on shares of NU in a research report on Tuesday. Finally, UBS Group upped their price target on NU from $16.00 to $18.40 and gave the company a “neutral” rating in a report on Thursday, December 4th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $18.34.

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.