SoFi Technologies stock was sinking after Bloomberg released the fintech company’s earnings, which weren’t supposed to arrive until after the close of trading Tuesday, early.
According to the Bloomberg article, 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 had released guidance in April after President Joe Biden announced that he would pause student loan payments until Aug. 31.
SoFi had not responded to a request for comment about the accuracy of the numbers at the time of publication, but its stock had fallen 18% to $4.8677 before it was halted for news. 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 [email protected]
