Dear SOFI Stock Fans, Mark Your Calendars for Aug. 2

  • SoFi (SOFI) will report second-quarter earnings on Aug. 2.
  • The consensus revenue estimate is $346.48 million.
  • Shares of SOFI stock are down more than 50% year-to-date.
SOFI stock - Dear SOFI Stock Fans, Mark Your Calendars for Aug. 2

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SoFi (NASDAQ:SOFI) stock is in full focus after the company confirmed Aug. 2 as the date for its second-quarter earnings results. A conference call will follow the earnings results, which will be released after the market closes. Shares of SOFI stock are up about 20% the past month in light of increases in the benchmark indices and a swath of news.

The company announced at its annual meeting that shareholders had voted to give the board discretionary authority to enact a reverse stock split. The ratio of the reverse split will fall somewhere between 1-for-2 and 1-for-10. SoFi noted a higher stock price could possibly attract more analyst coverage and institutional investments.

Earlier this week, SoFi disclosed plans to resell $1 billion of capital. That includes instruments such as common stock, warrants, stock options and more. Furthermore, the proceeds will be used for “working capital, acquisitions, retirement of debt and other business opportunities.” This move has stirred rumors of a potential acquisition, although nothing has been confirmed yet.

With that in mind, let’s get into the details of SoFi’s Q2 earnings.

Dear SOFI Stock Fans, Mark Your Calendars for Aug. 2

For Q2, the consensus analyst estimate for revenue is $346.48 million, which would imply year-over-year (YOY) growth of 46%. In addition, the consensus estimate for earnings per share (EPS) is a loss of 13 cents. Profitability remains an issue for the fintech company, although it reported an EPS loss of 48 cents a year ago and a loss of 14 cents last quarter. If the estimate for EPS holds true, it would signal a path toward profitability.

For Q3 guidance, analysts are expecting $390.34 million in revenue and an EPS loss of 9 cents. The revenue estimate would imply YOY growth of 55%.

During the previous quarter, SoFi noted that it expects the Biden administration to extend the student loan moratorium beyond August. This would mark the seventh extension if true. As a result, SoFi incorporated an extension of the moratorium in its full year financial guidance during Q1. Student loan origination volume came in at $983.8 million during Q1, or 29.6% of total origination volume. Personal loan volume came in at $2 billion, while home loans tallied in at $312 million.

On the date of publication, Eddie Pan did not hold (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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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