Nu Holdings Ltd Reports Results For The Quarter Ended September 30 - Earnings Summary

Nu Holdings Ltd. (NU) reported $2.94 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 37.7%. EPS of $0.12 for the same period compares to $0.07 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.01 billion, representing a surprise of -2.13%. The company delivered an EPS surprise of +20.00%, with the consensus EPS estimate being $0.10.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Nu performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Active customers: 91.7 million compared to the 90.43 million average estimate based on two analysts.
• Revenue- Fee and commission income: $469.38 million versus $492.28 million estimated by two analysts on average.
• Revenue- Interest income and gains (losses) on financial instruments: $2.47 billion versus $2.51 billion estimated by two analysts on average.

View all Key Company Metrics for Nu here>>>

Shares of Nu have returned +11.7% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Nu Holdings Ltd. (NU) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this company would post earnings of $0.10 per share when it actually produced earnings of $0.12, delivering a surprise of 20%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Nu , which belongs to the Zacks Technology Services industry, posted revenues of $2.94 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.13%. This compares to year-ago revenues of $2.14 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Nu shares have added about 90.2% since the beginning of the year versus the S&P 500's gain of 25.5%.

What's Next for Nu?

While Nu has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Nu : mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $3.36 billion in revenues for the coming quarter and $0.41 on $11.96 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Sprinklr (CXM), has yet to report results for the quarter ended October 2024.

This customer experience software developer is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -27.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Sprinklr's revenues are expected to be $196.55 million, up 5.5% from the year-ago quarter.

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