tiprankstipranks
Nu Holdings’ (NYSE:NU) Encouraging Q1 Results Please Investors
Market News

Nu Holdings’ (NYSE:NU) Encouraging Q1 Results Please Investors

Story Highlights

Nu Holdings delivered an upbeat performance in the first quarter. The company witnessed an expansion in its client base and strong demand for digital banking services.

Nu Holdings (NYSE:NU) stock gained 8.1% in the after-market trading session on Monday following the better-than-expected results for the first quarter of 2023. The digital banking service provider benefited from a growing customer base and strong purchase volume throughout the quarter.

The company reported Q1 earnings of $0.03 per share, above the consensus estimate of $0.02 per share, and compared favorably to the year-ago loss of $0.01 per share. Furthermore, revenues rose 84.5% year-over-year to $1.62 billion and surpassed the consensus estimate of $1.4 billion.

Meanwhile, deposits grew 34% year-over-year to $15.8 billion. Also, the expansion of net interest margin (NIM) by 7.2% in the first quarter resulted in net interest income jumping 138% to $815.3 million.

At the end of the first quarter, Nu Holdings’ total customers were 79.1 million, up from 59.6 million in the prior-year quarter. Moreover, the monthly average revenue per active customer increased by 28.4% to $8.6.

Is Nu Holdings a Buy or Sell?

The company has promising future prospects thanks to its expanding client base and rising profitability. Further, expanding NIM due to higher interest rates continues to support Nu Holdings’ top-line growth.

It is worth mentioning that Warren Buffett’s Berkshire Hathaway is one of the investors in NU stock. As per data collected by TipRanks, Buffett owns shares of Nu Holdings worth $436 million.

Overall, the Street is optimistic about Nu Holdings and has a Strong Buy consensus rating based on three Buys and one Hold. The average NU stock’s price target of $7.63 suggests 25.3% upside potential from current levels.

Interestingly, the stock has a Smart Score of “Perfect 10” on TipRanks. Note that shares with a “Perfect 10” score have historically outperformed the S&P 500 Index (SPX).

Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles