Futu Holdings Ltd is scheduled to release second-quarter earnings on Thursday before the Hong Kong market opens, with analysts projecting HKD 23.05 in earnings per share, a 26.4% year-over-year increase, and HKD 6.14 billion in revenue, up 15.6% from a year earlier.
Revenue estimates have risen 1.96% over the past two months, while earnings-per-share forecasts have remained unchanged. The company’s first-quarter results missed expectations, with EPS of HKD 6.0 falling short despite revenue of HKD 5.86 billion that was only marginally below estimates. Funded accounts grew 34.3% year-over-year to 3.59 million, while total client assets climbed 47.2% to HKD 1.22 trillion. Margin financing and securities lending balances increased 44.9% to HKD 72.9 billion.
Wall Street maintains a strong buy consensus on Futu, with 16 of 18 analysts rating the stock a buy and two holding neutral positions. The mean price target stands at $155.88, implying a potential upside of nearly 44% from the current price of $108.58. The forward price-to-earnings ratio is 12.29, down from a 52-week high of $202.53 reached before regulatory developments emerged.
Regulatory scrutiny has intensified, with the China Securities Regulatory Commission issuing a Notice of Investigation and Administrative Penalty Pre-Notification Letter to Futu in May. The company’s mainland China operations account for approximately 13% of its funded accounts. Despite this, Futu has continued its share repurchase program, with cumulative buybacks totaling roughly $418 million by late May.
