Futu Holdings Faces $271M Fine, Readies May 28 Earnings Report
FUTU•Futu Holdings faces a $271 million Chinese fine for unlicensed cross-border trading while under a securities fraud probe and prepares to report May 28 results with analysts projecting $761.35 million revenue. It repurchased $290 million, trades at a 10.62 P/E and saw a 20% one-day rally.
1. Chinese Regulatory Action
The Chinese regulator imposed a $271 million penalty on Futu Holdings for operating unlicensed cross-border trading services, resolving a major regulatory overhang even as a separate securities fraud investigation remains active.
2. Upcoming Earnings Forecast
Futu Holdings will release its quarterly results on May 28, with analysts forecasting earnings per share of $2.89 and revenue of approximately $761.35 million, a critical barometer for its profitability in a competitive broker-dealer sector.
3. Capital Management and Share Performance
The company has repurchased $290 million of its own shares this year, demonstrating active capital deployment. Its stock surged 20% in one session but still reflects a 33.4% year-to-date decline, underscoring ongoing market volatility.
4. Valuation Metrics
Futu’s shares trade at a P/E ratio of 10.62, alongside a robust current ratio of 9.26, indicating strong liquidity and a valuation that may appeal to value-oriented investors.
