LexinFintech Holdings Ltd. (LX) saw its stock price plummet 8.31% in after-hours trading on Tuesday, despite reporting strong fourth-quarter results for 2024. The significant drop appears to be driven by the company's cautious outlook for 2025, which overshadowed its positive performance.

For the fourth quarter of 2024, LexinFintech reported impressive financial results. Net income surged to RMB 362.749 million ($49.7 million), a substantial increase from RMB 12.097 million in the same period last year. The company's revenue also grew 4.3% year-over-year to RMB 3,658.833 million. However, these strong figures were not enough to prevent the stock's decline.

The main factor behind the sell-off seems to be LexinFintech's conservative guidance for 2025. The company expects flat to single-digit growth in total loan origination, citing ongoing macroeconomic uncertainties. This cautious stance has likely spooked investors who were hoping for more robust growth projections. Additionally, LexinFintech announced an increase in its cash dividend payout ratio to 25% of net income, effective January 1, 2025. While this could be seen as a positive for income-focused investors, it may have been interpreted by some as a sign that the company sees limited growth opportunities ahead.