Futu (NASDAQ:FUTU) Issues Quarterly Earnings Results, Misses Expectations By $2.12 EPS

by · The Cerbat Gem

Futu (NASDAQ:FUTU – Get Free Report) announced its earnings results on Thursday. The company reported $0.77 EPS for the quarter, missing the consensus estimate of $2.89 by ($2.12), FiscalAI reports. Futu had a net margin of 49.63% and a return on equity of 32.24%. The company had revenue of $694.17 million during the quarter, compared to the consensus estimate of $761.35 million.

Here are the key takeaways from Futu’s conference call:

  • Futu added 225,000 net new funded accounts in Q1, bringing total funded accounts to 3.59 million, up 34% year over year. Management said Hong Kong, Malaysia, and Singapore remained important growth drivers, while overseas Moomoo accounts surpassed 2 million.
  • Trading activity hit a record, with total volume reaching HKD 4.15 trillion, up 29% year over year. U.S. volume stayed strong at HKD 3 trillion, while Hong Kong volume rose 22% sequentially as investors bought into volatility.
  • Revenue rose 25% year over year to HKD 5.9 billion, but net income fell sharply because the company booked an approximately RMB 1.85 billion administrative penalty reprieve as an adjusted subsequent event. Excluding that item, management said net income would have increased year over year.
  • Management highlighted continued expansion into new products and markets, including U.S. prediction markets, where it expects to launch event-contract trading soon, and the PantherTrade crypto exchange in Hong Kong, which has begun full operations after VATP approval.
  • Futu said wealth management assets reached HKD 178.4 billion, up 28% year over year, with more client allocation shifting toward equity funds and structured products. It also said it remains confident in long-term growth in mature markets like Hong Kong and Singapore, and reiterated that the recent regulatory update should not materially affect full-year guidance.

Futu Stock Performance

FUTU stock opened at $110.22 on Thursday. The stock’s 50 day simple moving average is $142.96 and its 200 day simple moving average is $156.30. Futu has a fifty-two week low of $80.50 and a fifty-two week high of $202.53. The company has a market cap of $15.45 billion, a P/E ratio of 10.72, a price-to-earnings-growth ratio of 0.75 and a beta of 0.52.

Futu Dividend Announcement

The business also recently announced a special dividend, which was paid on Wednesday, April 29th. Investors of record on Thursday, April 16th were paid a dividend of $2.60 per share. The ex-dividend date of this dividend was Thursday, April 16th. Futu’s dividend payout ratio is currently 24.81%.

Institutional Trading of Futu

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership increased its stake in Futu by 7.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,660,168 shares of the company’s stock valued at $288,720,000 after purchasing an additional 116,143 shares in the last quarter. State Street Corp increased its stake in Futu by 18.4% during the 2nd quarter. State Street Corp now owns 1,212,481 shares of the company’s stock valued at $149,851,000 after purchasing an additional 188,840 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Futu by 805.2% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,126,633 shares of the company’s stock valued at $195,933,000 after purchasing an additional 1,002,171 shares in the last quarter. Bank of America Corp DE increased its stake in Futu by 34.4% during the 2nd quarter. Bank of America Corp DE now owns 1,006,656 shares of the company’s stock valued at $124,413,000 after purchasing an additional 257,389 shares in the last quarter. Finally, Renaissance Technologies LLC increased its stake in Futu by 5.9% during the 4th quarter. Renaissance Technologies LLC now owns 757,226 shares of the company’s stock valued at $124,344,000 after purchasing an additional 42,200 shares in the last quarter.

Analyst Ratings Changes

A number of equities research analysts have recently commented on FUTU shares. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $87.00 price objective (down from $300.00) on shares of Futu in a research note on Friday, May 22nd. The Goldman Sachs Group downgraded shares of Futu from a “buy” rating to a “neutral” rating and set a $102.13 target price for the company. in a research note on Monday. Zacks Research downgraded shares of Futu from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 8th. Finally, Barclays lowered their target price on shares of Futu from $236.00 to $200.00 and set an “overweight” rating for the company in a research note on Monday, March 16th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $161.52.

Get Our Latest Stock Report on FUTU

About Futu

(Get Free Report)

Futu Holdings Ltd. is a technology-driven brokerage and wealth management company that provides online brokerage services, market data, and investment tools to retail and institutional clients. Headquartered in Hong Kong and listed on the NASDAQ under the ticker FUTU, the company operates digital trading platforms that combine order execution, real-time quotes, news, and research tools to serve active investors and wealth management customers.

The firm’s product suite includes brokerage access to equities, exchange-traded funds and derivatives across major markets, margin financing, initial public offering (IPO) subscription services, wealth management products and discretionary investment solutions.

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