X Financial (NYSE:XYF) Announces Quarterly Earnings Results

X Financial (NYSE:XYF) announced its quarterly earnings data on Monday, August 24th. The company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.36, Zacks reports. X Financial had a return on equity of 9.14% and a net margin of 9.94%.The business had revenue of $146.24 million during the quarter, compared to analyst estimates of $145.96 million.

Here are the key takeaways from X Financial’s conference call:

• Origination and revenue declined sharply: Loan facilitation volume fell 70.2% year over year to RMB 11.63 billion, while net revenue dropped 56.3% to RMB 993.6 million. The company is prioritizing credit quality and capital preservation over near-term growth.
• Credit metrics improved sequentially but remain elevated: The 31–60-day delinquency rate declined to 1.73% and the 91–180-day rate to 9.09%, although both remained above year-ago levels. Management attributed the improvement to tighter underwriting and stronger collections, while cautioning that older vintages continue to pressure results.
• Profitability improved from the prior quarter: Net income rose 23.8% sequentially to RMB 47 million, adjusted net income increased 104.3% to RMB 166 million, and operating margin expanded to 19.6% from 12% in Q1. However, earnings remained substantially below the prior-year period.
• Balance-sheet credit risk increased: The company recorded RMB 95.3 million of provisions for credit losses related to deposits and other financial assets, largely tied to one funding institution that has delayed returning guarantee funds. Management said the amount was conservatively written down but may ultimately be recovered.
• Capital returns and liquidity remain important priorities: X Financial repurchased approximately 2.63 million ADS for $12.49 million and declared a $0.28-per-ADS cash dividend. The company reported approximately RMB 2 billion in cash and restricted cash, but provided no third-quarter guidance because of ongoing uncertainty.

X Financial Stock Performance

X Financial stock traded down $0.03 during mid-day trading on Friday, reaching $5.19. The company’s stock had a trading volume of 51,882 shares, compared to its average volume of 126,852. The firm’s fifty day moving average price is $5.21 and its two-hundred day moving average price is $4.89. X Financial has a 12-month low of $3.30 and a 12-month high of $14.86. The company has a market capitalization of $202.99 million, a P/E ratio of 2.65 and a beta of 0.53.

X Financial Cuts Dividend

The firm also recently disclosed a dividend, which will be paid on Monday, September 28th. Investors of record on Thursday, September 10th will be paid a $0.28 dividend. The ex-dividend date is Thursday, September 10th. This represents a yield of 1,076.0%. This is a negative change from X Financial’s previous dividend of $0.2802. X Financial’s dividend payout ratio (DPR) is presently 27.55%.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered X Financial from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, August 14th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of “Hold”.

About X Financial

X Financial (NYSE: XYF) is a China-based fintech company that provides online consumer finance services. Operating under the Xiaoying brand, the company uses technology and data analytics to connect individual borrowers with financing solutions through digital platforms.

Its principal products have included Xiaoying Card, a revolving consumer credit product, and Xiaoying Loan, an installment-based personal lending service. The company’s offerings are designed primarily for consumers in China seeking financing for personal and household needs, with applications, credit assessment, and servicing conducted online.

Founded in 2014 and headquartered in Shenzhen, X Financial has focused on using automated risk-management and online customer-acquisition systems to support its lending operations.