What happened
Shares of the Chinese consumer finance company LexinFintech Holdings Ltd-ADR (LX 3.21%) had jumped 20% at 10:30 a.m. EST, after the company reported earnings results for the first quarter of this year.
So what
LexinFintech reported earnings per share (EPS) of $0.53 in American depositary shares (ADS), equity shares of a foreign company held by an American bank and available for U.S. investors to purchase. That beat analysts' earnings estimates of $0.28 ADS soundly. Total revenue of roughly $449 million reportedly missed estimates by more than $30 million. Earnings also are up from a loss of $0.58 ADS in the first quarter of 2020.
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The company grew users more than 56% year over year and reached 132 million users at the end of the first quarter. Users with a line of credit at the company reached more than 30 million, while the number of active users with a loan product from the company in the first quarter topped 8.2 million.
"We are happy to announce a quarter where we achieved all-time highs in our key financial metrics," Lexin's CEO Jay Wenjie Xiao said in a statement. "This record quarter was driven by our larger and growing user base, the rapid growth of our loan originations, and the continued improvement of our asset quality due to the implementation of our New Consumption Strategy and the continuous refinement of our risk management efforts."
Now what
LexinFintech just had a very nice quarter that investors are clearly pleased with. The company is guiding for loan growth to continue to trend positively the rest of the year, and it expects asset quality to improve as well, which puts the company in good shape right now.
