Nu Holdings: Strong EPS Growth Amid Stock Price Decline

Nu Holdings' stock has faced volatility, dropping 37% from its peak. However, strong EPS growth of 84.5% for 2024 and significant revenue growth of 43% indicate underlying resilience. Investors are left questioning if now is the time to capitalizing on this dip.

Date: 15-03-2025

AI Rating: 6

Earnings Per Share (EPS): The report highlights that Nu Holdings achieved an adjusted earnings per share (EPS) of $0.46 in 2024, which is a remarkable increase of 84.5% compared to 2023. This strong growth in EPS reflects the company's effective operational strategies and profitability prospects.

Revenue Growth: Nu Holdings reported a revenue of $11.5 billion for the year 2024, reflecting a year-over-year growth rate of 43%. However, it has been noted that this growth rate has moderated compared to previous years, and projections indicate a potential slowdown to 29% in 2025. This presents a cautionary signal for growth expectations among investors.

Future Projections: Analysts anticipate the adjusted EPS for 2025 to be approximately $0.56, signifying a growth rate of 22% year-over-year. While this is a positive trend, it indicates a deceleration from the impressive growth seen in 2024, suggesting that investors should watch future earnings closely.

Overall, even with recent stock declines, the financial metrics show that Nu Holdings maintains a strong position, supported by considerable revenue and adjusted EPS growth. However, the anticipated slowdown in growth rates may temper investor enthusiasm.

Stocks: NU