Stock of LexinFintech Ends 5% Lower Despite Strong Results
Shares in the financing company closed at $12.99 apiece Friday, down 5 percent.
Shares in LexinFintech Holdings Ltd. (Nasdaq: LX), closed at $12.99 apiece Friday, down 5 percent, despite reporting better-than-expected revenue and income that nearly tripled.
The online consumer financing firm, focusing on China's young adults, reported total revenue of $293 million, up 22 percent year-over-year.
Net income increased by 228 percent to $84.3 million, or 48 cents per American depositary share.
"I am excited to report another quarter of strong performance, which has been driven by our three key advantages of diversified funding sources, financial technology, and consumption scenarios," Wenjie Xiao, LexinFintech's chairman and chief executive officer said.
In terms of funding sources, LexinFintech announced a plan to establish a new team to provide FinTech services to its financial partners in Lexin Partner Conference of April 2019. Among the institutions are Industrial and Commercial Bank of China, PICC Group, China Minsheng Bank (CGMBF), and Shanghai Pudong Development Bank.
For the outlook, the company said it expects total loan originations for the fiscal year 2019 to be approximately 90 billion to 100 billion yuan, approximately $13 billion to $14.5 billion. Total loan originations in the first quarter of 2019 reached 20 billion yuan, an increase of 36 percent from 14.8 billion in the first quarter of 2018.