FinVolution Group shares dip after posting Q2 results on market uncertainties

NEW YORK - FinVolution Group (NYSE:FINV ) reported second quarter results on Tuesday sending shares down 2.2% in premarket trading.

The Chinese fintech company posted adjusted earnings per share of RMB2.22 ($0.30). However, revenue came in at RMB3.17 billion ($435.9 million), missing consensus estimates.

FinVolution's transaction volume in China grew 2% year-over-year to RMB46.4 billion in Q2. The company's international business saw stronger growth, with transaction volume surging 27.8% to RMB2.3 billion.

"We ended the first half of 2024 on a positive note, driving progressive growth in the China market while maintaining faster growth momentum internationally through strong execution of our Local Excellence, Global Outlook Strategy," said CEO Tiezheng Li.

For the full year 2024, FinVolution reiterated its transaction volume guidance for the China market of RMB195.7 billion to RMB205.0 billion, representing 5-10% year-over-year growth. The company expects international transaction volume to reach RMB9.4 billion to RMB11.0 billion, up 20-40% from 2023.

While noting "encouraging signs of recovery", management cautioned that "uncertainties persist in the markets in which we operate" and said they will "remain prudent" in business operations.

The slight decline in FinVolution's stock price following the earnings release suggests investors were hoping for stronger results or more optimistic guidance amid China's uneven economic recovery. However, the modest 2.2% drop indicates the market reaction was relatively muted overall.

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Source: Investing.com