SoFi Technologies Inc. Up 13.05% To $6.74 After Earnings Beat

Monday, January 30, 2023 - SoFi Technologies Inc. (SOFI) reported upside earnings and revenues today.

Analyst expectations for SoFi Technologies Inc. earnings per share (EPS) were at a loss of $0.09 per share, with the company surpassing those estimates with a reported EPS loss of $0.05 per share, leading to a positive surprise of $0.04 per share (44%). SoFi Technologies Inc.'s earnings rose 67% year-over-year as the firm reported an EPS loss of $0.15 per share in its year-ago quarter. The positive annual growth shows the Financial Services company is performing well amid recent economic conditions.

Revenues were upbeat at $443.4 million. That is an increase of 58.43% in revenues from the year-ago report and is 4.12% higher than consensus estimates set at $425.9 million. Keep in mind that the revenues reported were on an adjusted basis, so they may not be directly comparable to estimates and prior periods.

The stock is up 13.05% to $6.74 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 31. Meanwhile, the average Wall Street analyst rated the stock a Buy.

SoFi is a financial services company that was founded in 2011 and is currently based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020 the company also offers payment and account services for debit cards and digital banking.