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.