Nu Holdings Ltd. (NYSE:NU) shares are jumping on Friday after the digital bank topped Wall Street’s estimates in its second-quarter report and Needham raised its price target on the stock.
Nu Holdings stock is showing exceptional strength. Why is NU stock surging?
Nu Holdings Beats on Both Earnings and Revenue
Nu Holdings reported second-quarter earnings of 22 cents per share, beating the 20-cent consensus estimate by 10% and up 69.23% from 13 cents per share a year earlier. Revenue came in at $5.51 billion, topping Wall Street’s $5.23 billion estimate by 5.48% and rising 50.30% from approximately $3.67 billion in the same period last year. Separately, the company reported gross revenue of nearly $5.9 billion for the quarter, up 39% year-over-year.
Net income reached $1.1 billion for the first time in the company’s history, up 17% from the first quarter and 49% from a year earlier, with return on equity closing the quarter at 33%. Gross profit rose 43% year-over-year and 25% sequentially to $2.4 billion.
