Futu Holdings Earnings on Deck – What To Expect (NASDAQ: FUTU)

Futu Holdings Limited (NASDAQ: FUTU), the Hong Kong-based digital brokerage and wealth management powerhouse, prepares to announce its first quarter 2025 financial results this morning. With shares trading at $107.71 and a 52-week range spanning $51.80 to $130.88, the stock has moved onto many radars for both its growth trajectory and the volatility that comes with operating at the intersection of fintech innovation and global markets.

Since the start of this year, FUTU has risen 35.55%, building on an impressive 2024 that had seen the stock price add ~50%. Now with earnings looming, markets are expectant.

The street is looking for the company to deliver EPS of $1.93, on revenue of ~$590 million. This would reflect a growth rate of 78.33% from the same period last year. Futu also has a habit of beating expectations, with each of the last four reports all delivering EPS above estimates.

With a market capitalization of $10.21 billion, the company reported full-year revenue of $1.74 billion and net income of $697.57 million in its most recent fiscal year. The company’s P/E ratio of 22 signals a premium valuation relative to the broader technology sector, where the average P/E is just 8.9x. Other multiples, such as a price/book ratio of 4.3x and a price/sales ratio of 9.9x, further highlight investor willingness to pay up for Futu’s growth potential.

Yet, this premium comes with expectations. The company’s PEG ratio of 0.80 suggests that growth is at least partially justifying the valuation, but it also leaves little room for disappointment.

Founded in 2007 by Leaf Hua Li, Futu has grown into a leading force in online financial services, operating through its flagship platforms, Futubull and Moomoo. The company’s suite of offerings includes securities and derivative brokerage, margin financing, fund distribution, and a variety of wealth management products under the Money Plus brand. Futu’s reach extends beyond Hong Kong, serving a global clientele and granting access to mutual funds, private funds, bonds, and structured products.

Futu’s recent business developments reflect a company eager to remain at the cutting edge of financial innovation. The launch of cryptocurrency deposit services—enabling Bitcoin, Ethereum, and Tether transactions—marks a bold foray into digital assets. By offering incentives like shares in Alibaba and Nvidia, Futu aims to attract a new generation of retail investors and diversify its revenue streams.

On the brand-building front, Futu’s Moomoo Foundation has rolled out financial literacy initiatives in partnership with educational organizations. By engaging with high schools and universities, Futu is investing in long-term customer acquisition and enhancing its reputation in key international markets.

Futu’s stock performance has been resilient, with price oscillations reflecting both market enthusiasm and caution. Recent institutional activity reveals a nuanced picture: Bank of America Corp DE has trimmed its stake, possibly signaling some near-term skepticism among large investors. Other analysts like BofA have lowered the firm's price target on Futu Holdings from $143.60 to $123.70. Bofa keeps a “Buy” rating on the shares, and UBS have raised the firm's price target on Futu Holdings from $130 to $136 and keeps a “Buy” rating on the shares.

From a technical perspective, the stock has found resistance significant up near $120, with the level having previously acted as a level of support back in 2021. Recent pullbacks in the past year have found support willing at $75, with the stock continuing to consolidate within the upper end of this range. Depending on markets' opinion on upcoming results, we could be set to see a breakout, or a move to the downside.

With its first quarter earnings on deck, the market awaits clarity on whether the company can sustain its impressive growth, capitalize on new ventures like cryptocurrency, and continue to outpace its sector peers. For investors, the coming days will be pivotal in determining whether Futu’s premium is well-earned, or a sign of froth in an increasingly crowded fintech landscape.