SoFi Technologies (NASDAQ:SOFI) was set to report earnings on Tuesday after the close. However, due to human error, the company accidentally released its results during the regular session. As a result of the accidental release, SoFi stock was halted from trading around 11:20 a.m. ET. At the time, it was — and still is as of 2:00 p.m. — down 18.5%.
On Apr. 6, the company altered its outlook following President Joe Biden Administration’s decision to extend the student loan moratorium until Aug. 1. At the time, SoFi slashed its full-year outlook, reducing its revenue and EBITDA projections from $1.57 billion and $180 million down to $1.47 billion and $100 million, respectively. On the same day, the company also announced that “three members of its Board of Directors […] will be stepping down.” However, management maintained the current-quarter expectations for revenue of $280 million to $285 million with roughly break-even adjusted EBITDA.
With today’s report, SoFi lost 14 cents per share in the quarter, a penny ahead of analysts’ expectations. Revenue came in far ahead of estimates at $322 million versus expectations of $286 million. Unfortunately, management’s outlook for the second quarter was a bit below expectations. The company expects $330 million to $340 million in sales versus estimates of $343.7 million. After such a big decline, though, will the market let SoFi stock off the hook?
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SoFi stock is down nearly 80% from its 52-week high of $24.95 and investors were not embracing a “risk-on” attitude ahead of earnings. It has made new all-time lows in two straight sessions and is down 26% over the past four sessions. Of course, the whopping 60% one-day decline we’re seeing in Upstart Holdings (NASDAQ:UPST) isn’t helping matters. Once shares begin trading again, we’ll have to see how investors embrace the report. What does that look like?
Bulls will want to see this stock reclaim the $6 breakdown spot from the last few weeks. If it can do that, $7.17 could be in play, followed by the $7.75 area. However, short of those developments, SoFi stock may remain in no-man’s land.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
