SoFi (NASDAQ:SOFI) stock beat estimates on second-quarter earnings and raised its guidance for the second time this year.
The stock did not react much, up about 2% as of writing.
SoFi, an online bank and brokerage, is expected to open this morning at about $7.50 per share, a market capitalization of $7.8 billion on expected full-year revenues of $2.2 billion.
Why No Reaction?
It’s possible that SOFI stock will rise sharply after the market opens. The numbers were good in what management called a “transitional year.”
SoFi said it earned $7.95 million, 1 cent per share, on revenue of $597 million for the quarter ending June 30. CEO Anthony Noto described the quarter as “exceptional,” projecting earnings of 4 cents per share in the current quarter.
Analysts expected a break-even quarter and revenue of just $565 million.
SoFi began as a lender focused on refinancing student loans. This expanded into personal loans and home loans. Now, the company wants its financial services and technology to power growth, and they were up 46%. Personal loans were up just 5%, but loan originations were up.
Analysts at JPMorgan Chase were neutral ahead of earnings. Tipranks counts 16 analysts following the stock, four of them buyers and three sellers. Traders at Stocktwits are generally bearish on the name.
Some traders are now trying to bang the drum for the stock. A Stocktwits member called Titan Traders called the revenue, earnings, and guidance raises a “triple beat.”
SoFi has a high public profile, in part because its name is on the stadium used by the Los Angeles Rams and Chargers. CEO Noto was formerly the Chief Financial Officer of the National Football League. He signed the naming rights deal to emphasize SoFi’s national footprint.
SOFI Stock: What Happens Next?
SOFI stock continues to sell below the special purpose acquisition company (SPAC) price of $10 per share it had before it came public in 2021.
On the date of publication, Dana Blankenhorn 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
