SoFi Technologies, Inc. ($SOFI) Earnings (Q3 FY22)

 SoFi Technologies, Inc. ($SOFI) Earnings and Opinion:


SoFi is a company in the Financial Services sector and operates in the Credit Services industry. The company provides digital financial services. SoFi was founded in 2011 and is currently headquartered in San Francisco, California. The company made it debut on the stock market in early 2021.

SoFi Earnings Results:

  • Adj Net Revenue of $419.3M beating expectations of $392.3M
  • Adj EBITDA of $44.3M beating expectations of $29.93M
  • Net Interest Income of $157.85M beating expectations of $145.65M
  • Adj Diluted EPS of -$0.09 beating expectations of -$0.10
Opinion:
SoFi traded 5% higher in todays trading session. The company reported earnings before the market opened this morning. SoFi had a solid earnings report and forecasted future revenues higher. They also are seeing profitability rise as well with some EPS numbers coming in higher than anticipated. The lending company has seen some high quality deposits benefited from a lower cost of funding its loans. The economic benefits the company provides is starting to see some light, as portrayed by the recent earnings release and the forecast given by management. The only concern from this quarter is the student loan volume. The company saw a 50% drop in the volume from pre-pandemic levels. This doesn't take away from the solid quarter the company had. It is still a young company, but the future is looking bright. Profitability is continually getting better, and management is making some promises for revenue continually growing. As far as valuation goes, the company seems to still be a little overvalued. It is hard to judge, because the company doesn't have positive earnings yet. This is where you really have to dive deep into the business model. In my opinion, I have always been a little weary on this one. SoFi has done a fantastic job on advertisements to try and grow the business. However, the one thing that concerns me, is the fact that the competition has way more capital and experience to transition and fade out SoFi. I definitely think this is a really risky play, but it could pay some dividends if you throw a little money on it. I would say to throw a small amount on this one, especially if you have a little extra cash laying around. It could double your money or more in the next couple of years, as long as it keeps up its momentum and growth.


*Information from Bloomberg and Yahoo Finance 

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more