Noah Holdings Ltd ADR Up 6.48% To $15.62 After Earnings Miss

Wednesday, May 31, 2023 - Noah Holdings Ltd ADR (NOAH) reported downside earnings and upside revenues.

The consensus among analysts for Noah Holdings Ltd ADR was for an earnings per share (EPS) of $0.54. The firm failed to meet those projections, reporting an EPS of $0.50, a negative surprise of $0.04 (-7%). Profits fell 32% year-over-year after reporting an EPS of $0.73 in its year-ago quarter. The negative growth rate signals that the Financial Services company isn't performing well amid current economic conditions.

Consensus analyst estimates were at $107.3 million. The Financial Services company managed to surpass those expectations for its first quarter with revenue of $117.8 million, a positive revenue surprise of $10.5 million (10%). The firm managed negative 6% growth year-over-year due to Noah Holdings Ltd ADR reporting quarterly revenue of $125.5 million in its year-ago quarter. Noah Holdings Ltd ADR achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is up 6.48% to $15.62 after the report.

Noah Holdings Ltd ADR's profit margins took a hit as earnings fell at a faster pace than revenues.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 46. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Noah Holdings Ltd is a wealth management service provider. It focuses on global wealth investment and asset allocation services for high-net-worth individuals and enterprises in China. The company operates through three segments: wealth management, asset management, and other business. Its product offerings consist primarily of over-the-counter wealth management and OTC asset management products and mutual fund products. The portfolio of the group mostly includes fixed income products, private equity funds and securities investment funds. Most of the firm revenue is generated through one-time commissions and recurring service fees paid by third-party product providers.