X Financial (NYSE:XYF) Announces Earnings Results, Beats Estimates By $0.36 EPS

X Financial (NYSE:XYF) posted its quarterly earnings results on Monday. The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.36, Zacks reports. The firm had revenue of $146.24 million during the quarter, compared to analysts’ expectations of $190.63 million. X Financial had a net margin of 15.06% and a return on equity of 14.38%.

Here are the key takeaways from X Financial’s conference call:

• Origination and revenue declined sharply: Loan facilitation volume fell 70.2% year over year to RMB 11.63 billion, while net revenue dropped 56.3% to RMB 993.6 million. The company is prioritizing credit quality and capital preservation over near-term growth.
• Credit metrics improved sequentially but remain elevated: The 31–60-day delinquency rate declined to 1.73% and the 91–180-day rate to 9.09%, although both remained above year-ago levels. Management attributed the improvement to tighter underwriting and stronger collections, while cautioning that older vintages continue to pressure results.
• Profitability improved from the prior quarter: Net income rose 23.8% sequentially to RMB 47 million, adjusted net income increased 104.3% to RMB 166 million, and operating margin expanded to 19.6% from 12% in Q1. However, earnings remained substantially below the prior-year period.
• Balance-sheet credit risk increased: The company recorded RMB 95.3 million of provisions for credit losses related to deposits and other financial assets, largely tied to one funding institution that has delayed returning guarantee funds. Management said the amount was conservatively written down but may ultimately be recovered.
• Capital returns and liquidity remain important priorities: X Financial repurchased approximately 2.63 million ADS for $12.49 million and declared a $0.28-per-ADS cash dividend. The company reported approximately RMB 2 billion in cash and restricted cash, but provided no third-quarter guidance because of ongoing uncertainty.

X Financial Price Performance

NYSE XYF opened at $5.37 on Tuesday. The firm has a market cap of $209.72 million, a P/E ratio of 1.56 and a beta of 0.46. X Financial has a fifty-two week low of $3.30 and a fifty-two week high of $16.40. The stock’s 50-day moving average is $4.99 and its two-hundred day moving average is $4.85.

Institutional Trading of X Financial

A number of large investors have recently bought and sold shares of the business. BNP Paribas Financial Markets bought a new position in X Financial in the third quarter valued at approximately $105,000. Police & Firemen s Retirement System of New Jersey bought a new stake in X Financial in the 4th quarter worth about $43,000. Russell Investments Group Ltd. increased its position in X Financial by 468.4% in the third quarter. Russell Investments Group Ltd. now owns 33,780 shares of the company’s stock worth $457,000 after buying an additional 27,837 shares during the last quarter. Finally, Jump Financial LLC purchased a new position in X Financial during the 2nd quarter valued at about $697,000. 1.15% of the stock is owned by institutional investors.

Analyst Ratings Changes

Separately, Weiss Ratings cut shares of X Financial from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, August 14th. One equities research analyst has rated the stock with a Hold rating, According to data from MarketBeat, the stock has a consensus rating of “Hold”.

X Financial Company Profile

X Financial (NYSE:XYF) is a Beijing-based online credit marketplace focused on providing diversified financing solutions to individuals and small- and medium-sized enterprises (SMEs) in China. The company was established in 2014 and completed its initial public offering on the New York Stock Exchange in 2016. Since inception, X Financial has built a technology-driven platform that connects borrowers with a network of institutional investors, banks and other funding sources, aiming to streamline access to credit and improve lending efficiency.

The company’s core offerings include consumer loans, SME loans, real estate-secured financing and wealth management products.