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Nubank reported a net income of $224.9 million for the second quarter, marking a significant turnaround from the $29.9M loss recorded in the same period the previous year. Analysts were looking for a net income of $146.6M.
Earnings per share (EPS) surged to 4.6 cents from a loss of 0.64 cents in the previous year. Revenue for the quarter was $1.87 billion, ahead of the consensus of $1.78B.
Shares gained nearly 3% in pre-open Wednesday.
Total deposits amounted to $18B, reflecting a 35% increase from the previous year and surpassing the estimated $17.21B. The total client count rose to 83.7M.
Susquehanna analysts said the results showed Nubank “seems comfortable with the lending environment.”
“We are raising estimates accordingly and reiterate our Positive rating and $10 price target,” they said.
Bank of America analysts added:
“Results reflected improving operating trends, such as ARPAC expansion and sequential efficiency gains. Nonetheless, we maintain our Neutral rating, as we view valuation as fair at 6.6x trailing P/B.”
