Financial News

SoFi Earnings: What To Look For From SOFI

SOFI Cover Image

Digital financial services company SoFi Technologies (NASDAQ: SOFI) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.

SoFi beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $854.9 million, up 42.8% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and . It reported 11.75 million active customers, up 33.9% year on year.

Is SoFi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting SoFi’s revenue to grow 29.7% year on year to $904.4 million, in line with the 29.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

SoFi Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SoFi has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.6% on average.

Looking at SoFi’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. LendingClub delivered year-on-year revenue growth of 31.9%, beating analysts’ expectations by 3.9%, and Enova reported revenues up 16.3%, in line with consensus estimates. LendingClub traded up 10.5% following the results while Enova was also up 9.5%.

Read our full analysis of LendingClub’s results here and Enova’s results here.

Investors in the consumer finance segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. SoFi is up 6.1% during the same time and is heading into earnings with an average analyst price target of $23.25 (compared to the current share price of $29.23).

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