SoFi Technologies (NASDAQ:SOFI) stock is in focus today after the company confirmed that it would report third-quarter earnings on Nov. 1 at around 7:00 a.m. Eastern. A conference call will follow shortly afterward at 8:00 a.m. Eastern.
Earlier this week, the fintech company announced that its Galileo subsidiary achieved “Visa Ready” issuer certification for its payment cards as a service API (PCaaSA) process for card issuing. The certification shows that Galileo meets Visa’s (NYSE:V) security and functionality standards to expand its payment processing services. Using Galileo and its API, clients can create their own payment card programs and digital banking solutions. These solutions include checking and savings accounts, lending and deposits.
Galileo Chief Revenue Officer Seth McGuire added the following about the news:
“Galileo continues to expand the financial frontier by creating frictionless, digital-first experiences […] By becoming Visa Ready certified, we are solidifying our current and prospective clients’ trust in choosing our next-gen digital and core banking platform.”
With that in mind, let’s take a look at what earnings have in store for SOFI stock.
Dear SOFI Stock Fans, Mark Your Calendars for Nov. 1
For Q3, analysts expect SoFi to bring in revenue of $392.76 million — up 56% year-over-year (YOY) — and an earnings per share (EPS) loss of 10 cents. The highest revenue estimate for the company sits at $414 million while the lowest rests at $381 million. For EPS, the high estimate is a loss of 9 cents and the low is a loss of 13 cents. During the same period last year, SoFi reported revenue of $251.57 million and an EPS loss of 5 cents.
SoFi received a major boost after President Joe Biden announced that the federal student loan moratorium would officially end on Dec. 31, with payments resuming the following day. Bank of America analyst Mihir Bhatia, who has a price target of $9 on SOFI stock, believes the resumption of these payments should create a “meaningful catalyst path” for SoFi. Still, the effects of these payments will not be seen in the upcoming earnings.
For guidance, analysts forecast Q4 revenue of $431.74 million and an EPS loss of 9 cents. That would bring full-year revenue to about $1.5 billion (up 48% YOY) and full-year EPS to a 44 cent loss. In 2021, the company reported revenue of $1.01 billion and an EPS loss of $1. Realization of the 2022 full-year estimate would mark a significant improvement in profitability for the company.
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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.