LX - LexinFintech gains after Q2 results up Q/Q Q3 and 2H guidance issued

Chinese online and offline consumption platform LexinFintech Holdings ( LX ) rose ~21% after Q2 earnings showed improvement on a quarterly basis and a positive Q3 and 2H guidance was issued.

The company's Q2 non-GAAP EPADS was $0.15, while revenue was $360.23M (-28.8% Y/Y).

Revenue from new consumption-driven location-based services was RMB538M, up 69% Q/Q and 32.2% Y/Y, while revenue from technology-driven platform services was RMB436M, down 12.3% Q/Q. Revenue from credit-driven platform services was up 60.4% Q/Q to RMB1.4B.

Loan origination was RMB49.1B, up 13.9% Q/Q. For Q3 , the company expects loan origination to be RMB53B or above.

Net profit was RMB167M (+105% Y/Y).

"Since we have taken a more prudent approach to reflect risk in the first quarter by stepping up the day-one provision based on the current external situation, we expect that our profit will continue to follow an upward trend in the second half of this year," CFO Sunny Sun said during the bank's Q2 earnings call.

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