SoFi Technologies stock has resumed trading after formally releasing the earnings that had been released early by Bloomberg. The earnings weren’t supposed to arrive until after the close of trading Tuesday.
SoFi reported a loss of 14 cents a share, meeting analyst forecasts, on sales of $321.7 million, ahead of estimates for $284.9 million.
Unfortunately for SoFi shareholders, SoFi now expects second-quarter adjusted revenue between $330 million and $340 million, below estimates for $343.9 million, and forecast earnings before interest, taxes, amortization, and depreciation of $100 million to $105 million, below estimates for $119 million. Revenue for the year should come in at around $1.51 billion, according to the Bloomberg report, above estimates for $1.46 billion.
SoFi stock was down 14% after getting halted, an improvement from the 18% it was down before the halt. Its stock has fallen 69% in 2022, far worse than the S&P 500’s 17% decline and the Dow Jones Industrial Average’s 12% fall.
At least one analyst doesn’t think that the news is as bad as it looks to the market, particularly given the fact that personal loans were up 151% from one year ago. “To say that the stock’s -18% move this AM is undeserved is an understatement,” wrote Mizuho analyst Dan Dolev. “As a reminder, in 2021 the yield on personal loans was nearly ~11%, which is over 2x the yield on student loans.”
Write to Ben Levisohn at ben.levisohn@barrons.com
Source: finance.yahoo.com