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Nu brought in $6.30 billion in revenue this quarter, which was better than the $5.96 billion analysts expected. However, profit per share was $0.22, just missing the $0.23 target. The stock fell about 4 percent following the report, though this often happens when a high-growth company doesn't beat every single metric.
The core of the business remains its efficiency. Nu spends far less to serve each customer than traditional banks because it doesn't have to pay for physical branches. As it expands from Brazil into Mexico and Colombia, the key for owners is seeing if it can keep those costs low while growing its loan book. This quarter shows the growth engine is still running fast, even if the bottom-line profit didn't quite hit the mark.
See the full quarter, and how our tracked metrics did
Source: Company earnings report
Nu Holdings will report its latest quarterly results after the market closes today. Analysts are looking for earnings of about 23 cents per share on roughly 5.96 billion dollars in revenue. Beyond the headline numbers, the most important things to watch are the cost to serve each customer and the growth of the loan book in Mexico and Colombia. The company's main advantage is its low-cost digital platform, so keeping that monthly cost per customer below one dollar is key to its long-term profit margins.
Nu Holdings will share its latest quarterly results on November 12. Analysts are looking for earnings of about $0.23 per share on revenue of nearly $6 billion. This update will be an important check on whether the bank is still growing its customer base in Mexico and Colombia as quickly as it has in Brazil. Beyond the top-line numbers, we will be watching the cost to serve each customer. Nu’s main advantage is that its digital platform is far cheaper to run than a traditional bank with physical branches. Keeping that cost low while expanding into new countries is what allows the company to stay more profitable than its older rivals.
Monness set its price target for the digital bank at $20. This is significantly higher than the current price of about $12, suggesting the firm sees room for the stock to rise as the company expands its lending business in Latin America. The average target across all analysts who follow the stock now sits at about $17.
Source: Monness
Shares of Brazilian companies dropped on Monday following the unexpected re-election of President Luiz Inácio Lula da Silva. Nu Holdings, which serves over 100 million customers in Brazil, saw its stock fall about 17 percent as the market reacted to the news.
For a digital bank like Nu, political shifts in its largest market matter because they can lead to changes in banking rules or the broader economy. While this creates a period of uncertainty for the stock price, it does not change the bank's core advantage of having much lower costs than its traditional rivals. We are watching for any signs that new government policies might affect how easily the company can lend or grow its profits in Brazil.
Source: Investopedia
Management has a history of hitting their targets, but recent results show they are no longer easily outrunning analyst expectations. This suggests a more predictable, mature phase where the stock is less likely to see big surprises.
| Expectation | |
|---|---|
| EPS | $0.23 |
| Revenue | $6.23B |