SoFi (NASDAQ:SOFI) stock is trending and soaring about 12% in early trading. The lender this morning reported stronger-than-expected fourth-quarter results and provided 2023 guidance that beat analysts’ average estimate.
SOFI Stock: Q4 Results and 2023 Guidance
SoFi’s top line, excluding certain items, jumped 58% year-over-year to $443.4 million, roughly $17.6 million above analysts’ average outlook. It reported a per-share loss of 5 cents, versus the mean outlook of a 9 cents per-share loss. And its EBITDA, excluding certain items, rose $4.6 million YOY to $70.6 million.
SoFi’s personal loan originations jumped 50% YOY to 42.5 billion, but its student loan originations tumbled 72% YOY to $405,8 million.
Turning to guidance, in 2023, it expects its net revenue to climb 25%-30% to $1.925 billion to $2 billion, well above analysts’ mean outlook of $1.53 billion. Finally, SoFi predicted that its adjusted EBITDA would come in at $260 million to $280 million, slightly above the mean estimate of $254 million.
“As a result of this growth in high quality deposits, we are benefiting from a lower cost of funding for our loans,” said CEO Anthony Noto. “Our deposit funding also increases our flexibility to capture additional net interest margin (NIM) and optimize returns, a critical advantage in light of notable macroeconomic uncertainty,” the CEO explained.
JPMorgan’s Pre-Earnings View
On Jan. 17, JPMorgan started coverage of SOFI stock with a “neutral” rating. The firm is upbeat about the company’s efforts to become “the full-service bank for highly educated, digitally inclined consumers.”
However, it warned that the Federal Reserve’s interest rate hikes could cause SoFi to write down loans, and he thinks that worries about its consumer loan portfolio will hold down the shares. JPMorgan placed a $6 price target on SOFI stock.
On the date of publication, Larry Ramer 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.
