Lufax (NYSE:LU) Posts Quarterly Earnings Results, Misses Expectations By $11.08 EPS

Lufax (NYSE:LU) released its quarterly earnings data on Tuesday. The company reported ($0.27) EPS for the quarter, missing analysts’ consensus estimates of $10.81 by ($11.08), Zacks reports. The company had revenue of $921.68 million during the quarter, compared to analysts’ expectations of $2.22 billion.

Here are the key takeaways from Lufax’s conference call:

• Net loss widened to RMB 1.494 billion from RMB 380 million a year earlier, driven by higher credit impairment losses and RMB 773 million of tax expense, including non-cash deferred-tax-asset and withholding-tax charges.
• Third-quarter new loan sales rose 2.5% year over year to RMB 58.3 billion, led by consumer finance growth of 25.2% to RMB 39.7 billion, while total outstanding loans declined 11.9% year over year to RMB 167.1 billion.
• Asset-quality volatility increased amid weak demand and intensified enforcement of debt-collection practices; the total C-M3 flow rate rose to 1.2% from 1.0% sequentially, and credit impairment losses increased 10.3% to RMB 4.511 billion.
• Management expects regulatory pressure to continue for several months but is shifting toward selective customer acquisition, in-house and AI-assisted collections, and stricter compliance; it said newly originated 2026 loans are performing within expectations and better than prior vintages.
• Funding availability remained “largely sufficient,” with partner-bank quotas and willingness to lend stable; funding costs excluding consumer finance fell 20 basis points sequentially to 3.6%, according to management.

Lufax Trading Down 1.6%

Shares of NYSE:LU traded down $0.13 during trading on Thursday, reaching $8.04. The stock had a trading volume of 59,125 shares, compared to its average volume of 138,999. The business has a fifty day moving average price of $11.25 and a 200-day moving average price of $17.39. The company has a quick ratio of 1.72, a current ratio of 1.72 and a debt-to-equity ratio of 0.08. The stock has a market cap of $697.00 million, a P/E ratio of -1.32 and a beta of 0.69. Lufax has a fifty-two week low of $7.70 and a fifty-two week high of $32.10.

Analysts Set New Price Targets

Several analysts have recently issued reports on LU shares. Wall Street Zen cut Lufax from a “hold” rating to a “sell” rating in a research note on Saturday, August 22nd. Weiss Ratings restated a “sell (d)” rating on shares of Lufax in a research report on Thursday, August 13th. Zacks Research raised Lufax from a “strong sell” rating to a “hold” rating in a report on Monday, September 28th. Deutsche Bank Aktiengesellschaft set a $14.00 price objective on shares of Lufax and gave the company a “hold” rating in a research note on Thursday, August 27th. Finally, JPMorgan Chase & Co. upgraded Lufax from a “neutral” rating to an “overweight” rating and set a $20.00 price objective for the company in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $17.00.

Key Stories Impacting Lufax

Here are the key news stories impacting Lufax this week:

• Neutral Sentiment: Lufax announced changes to the composition of its Internal Control Improvement Committee, effective October 28. The governance update may improve oversight, but the company did not indicate a direct financial impact. Lufax Announces Changes in Internal Control Improvement Committee
• Negative Sentiment: Lufax reported a third-quarter net loss of approximately RMB1.494 billion, highlighting continued profitability pressure and contributing to the selloff. Lufax Reports Q3 2026 Net Loss
• Negative Sentiment: Total income fell to RMB6.18 billion (about $922 million) from RMB6.479 billion a year earlier, a decline of roughly 4.6%. The result was also reported as well below analyst revenue expectations. Lufax Reports Third Quarter 2026 Financial Results
• Negative Sentiment: Market coverage characterized the quarter as one in which losses deepened. Lufax reported a quarterly loss per share of $0.27 versus a published consensus estimate of $10.81, while revenue of $921.68 million compared with an estimate of $2.22 billion. These large earnings and revenue shortfalls intensified concerns about the company’s operating performance. Lufax Holding Stock Sinks as Q3 Losses Deepen

About Lufax

Lufax Holding Ltd. (NYSE: LU) is a China-based financial services technology company that operates digital platforms for retail and small-business finance. The company connects consumers and small-business owners with financial products and services through online channels and technology-enabled processes.

Lufax’s business has historically included retail lending, wealth management and related financial services. Its platforms have provided access to consumer and small-business loans, investment products and other services offered in cooperation with financial institutions.