Nu Shares Dip as Profit Beat Fails to Hide Revenue Concerns
- Revenue growth cools, prompting Itau BBA downgrade to neutral
- After falling 10%, shares pared losses to close 2.9% lower
Nubank headquarters in Sao Paulo, Brazil.
Photographer: Jonne Roriz/BloombergThis article is for subscribers only.
Shares of Nu Holdings Ltd. slid after releasing third quarter earnings as analysts raised questions over revenue growth and pre-tax results, despite a beat on net income.
For the three months ended Sept. 30, net income more than doubled from a year earlier to $553.4 million, the Sao Paulo-based company said Wednesday in a statement. That surpassed the $495 million average estimate by analysts in a Bloomberg survey. Return on equity was 30%, also beating expectations, while revenue was largely in-line at $2.9 billion.