Futu Holdings (FUTU), a Chinese language on-line brokerage and wealth administration agency, reported skyrocketing earnings progress that topped expectations. Intraday, FUTU inventory jumped.
Futu earnings exploded 880% to 49 cents a share, beating expectations by 8 cents. Income swelled 283% to $153 million, additionally beating.
The brokerage added 98,632 paying shoppers on a internet foundation in This autumn, representing a 161% progress fee, for a year-end complete of 516,721. Futu CEO Leaf Hua Li stated “greater than half of latest shoppers have been from Hong Kong and abroad.”
Complete consumer belongings surged 227% 12 months over 12 months to $36.7 million within the fourth quarter.
Why This IBD Instrument Simplifies The Search For High Shares
Shares jumped 9.3% to 162.16 on the inventory market right now. FUTU inventory is prolonged from a purchase level of 51.20 and from its 10-week shifting common, in keeping with MarketSmith chart evaluation. The inventory, which rebounded from its 21-day line Tuesday, might be constructing the fitting aspect of a consolidation after an enormous run in January to early February.
Futu inventory hit an all-time excessive of 204.25 on Feb. 10. It has a number one 99 RS Ranking and its relative power line is trending upward. With an EPS Ranking of 84 and a Composite Ranking of 99, Futu is ranked No. 1 within the IBD Finance-Investments Financial institution-Brokers group.
It has a three-year EPS progress fee of 111% and a three-year gross sales progress fee of 96%.
Tied with Futu for the No. 1 rating is Cowen (COWN), which supplies analysis, brokerage and funding banking to overseas and home firms. COWN inventory fell 1.6%.
China-based brokerage Up Fintech (TIGR) dipped 0.3%.
Big Yr For Futu Holdings
For 2020, Futu’s income ballooned 212% year-over-year to $427 million. Complete gross revenue rocketed 235% to $337.3 million. Complete prices have been $89.8 million, a rise of 147% from 2019.
The corporate says it “primarily serves the rising prosperous Chinese language inhabitants.”
Futu supplies investing providers by means of its proprietary digital platform, Futubull, an utility that’s accessible by means of any cellular machine, pill or desktop. The corporate’s major fee-generating providers embody commerce execution and margin financing, which permit its shoppers to commerce securities, similar to shares, warrants, choices, futures and exchange-traded funds, throughout totally different markets. It additionally has a wealth administration service known as Cash Plus.
Please observe Adelia Cellini Linecker on Twitter @IBD_Adelia.
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