FinVolution Group Full Year 2023 Earnings: Misses Expectations

FinVolution Group (NYSE:FINV) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥12.6b (up 12% from FY 2022).
• Net income: CN¥2.34b (up 3.3% from FY 2022).
• Profit margin: 19% (down from 20% in FY 2022). The decrease in margin was driven by higher expenses.
• EPS: CN¥8.51 (up from CN¥8.02 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

FinVolution Group Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 2.0%.

The primary driver behind last 12 months revenue was the People's Republic of China (PRC) segment contributing a total revenue of CN¥10.4b (83% of total revenue). The most substantial expense, totaling CN¥4.52b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how FINV's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Finance industry in the US.

Performance of the American Consumer Finance industry.

The company's shares are up 3.2% from a week ago.

Risk Analysis

We should say that we've discovered 2 warning signs for FinVolution Group (1 can't be ignored!) that you should be aware of before investing here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.