LexinFintech Holdings Ltd. (LX) saw its stock price plummet 5.38% in after-hours trading on Tuesday, despite reporting strong fourth-quarter results. The Chinese fintech company's cautious outlook for 2025 appears to have overshadowed its positive performance.
For the fourth quarter of 2024, LexinFintech reported a net income of RMB 362.749 million ($49.7 million), representing a significant 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. Despite these improvements, investors seemed more focused on the company's conservative guidance for the coming year.
Looking ahead to 2025, LexinFintech expects flat to single-digit growth in total loan origination, citing macroeconomic uncertainties. The company emphasized its commitment to a prudent operating strategy, prioritizing asset quality and profitability enhancement. Additionally, LexinFintech announced an increase in its cash dividend payout ratio to 25% of net income, effective January 1, 2025, which may have been viewed as a sign of caution by some investors.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.