Earnings Buzz: China Rapid Finance Limited (NYSE:XRF)

China Rapid Finance Limited (NYSE:XRF) performed of -42.48% in year to date period and weekly performance of -14.32%. The stock has been moved at -65.11% over the last six months and -54.81% throughout last twelve months. The stock has performed -15.64% around last thirty days, and changed -32.58% over the last three months. China Rapid Finance Limited (XRF) performed 11.53% and it registered share value at $3.29 in recent trade transaction. At present, the stock price sited at -74.42% from the 52 week high and situated at 12.67% from 52 week low. 216847 shares traded on hands while it’s an average volume stands with 116.75K shares.

China Rapid Finance Limited (NYSE:XRF), operator of one of China’s largest consumer lending marketplaces, recently disclosed preliminary financial results for the first quarter of 2018.

The Company expects to report a net loss in the range of $25 to $30 million, the majority of which consists of approximately $16 million of one-time expenses: 1) non-recurring expenses associated with preparing for registration; 2) write-offs related to receivables and amortizations; 3) non-cash accounting charges related to adoption of the new GAAP standard for revenue recognition (ASC 606); and 4) one-time costs associated with a pilot funding program that was discontinued due to regulatory changes.

Dr. Zane Wang, Chief Executive Officer, Founder and Chairman of the Company, commented: “Regulatory changes had a short-term negative impact on our operations, as we discussed on our last earnings conference call. During this period, we capped our fees and limited loan originations to new borrowers as we increased our testing of new products. Our cash balance is more than adequate to fund operations and provide capital for growth initiatives.”

Wang continued, “We have completed all the current regulatory requirements for registration. In the meantime, we continue to aggressively cut operating costs and accelerate company-wide efficiency improvements in order to streamline our business. As of mid-May, operating performance has improved meaningfully due to higher loan originations and the reduced operating expenses. To the extent that the external environment remains stable, we can achieve significantly improved financial results in Q2 and profitable operations in the second half.”

The company expects to formally announce Q1 2018 results in mid-June.

VOLATILITY FACTOR: The stock remained 11.28% volatile in recent week and indicated 6.40% volatility in last month. ATR value of 0.27 measure stock volatility. The Average True Range is an exponential moving average (14-days) of the True Ranges.

PROFITABILITY RATIOS: Operating Margin is seen at -39.80%. Return on Assets (ROA) an indicator of how profitable a company is relative to its total assets, is -110.70%. Return on Equity (ROE) is -702.30% and Return on Investment (ROI) is -63.00%.

  • Daniel Johnson
    Daniel Johnson studied a business degree majoring in finance and security analysis. He has a deep understanding of both technical and fundamental forms of analysis, he deeply believes that it makes a lot more sense for average investors to understand fundamental analysis, which he believes anyone can learn. Daniel has over 10 years of experience as a professional journalist, writer and an editor. He holds a bachelor’s degree in International Business from University of Melbourne. He writes articles about hot stocks, dividend growth investing, options trading, investment decisions, stock selection, portfolio management, and passive income generation. Daniel primarily reports on Hot Stocks category. Email Contact: Daniel@stockdigest.info

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