Digital financial services company SoFi Technologies (NASDAQ: SOFI) will be reporting earnings this Wednesday before the bell. Here’s what investors should know.
SoFi beat analysts’ revenue expectations last quarter, reporting revenues of $1.09 billion, up 41.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS in line with analysts’ estimates.
Is SoFi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting SoFi’s revenue to grow 31.1% year on year, slowing from the 43.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. SoFi has a history of exceeding Wall Street’s expectations.
Looking at SoFi’s peers in the personal loan segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Happen Bank delivered year-on-year revenue growth of 5.8%, meeting analysts’ expectations, and FirstCash reported revenues up 29.4%, topping estimates by 4.1%. FirstCash traded down 6.6% following the results.
Read our full analysis of Happen Bank’s results here and FirstCash’s results here.
There has been positive sentiment among investors in the personal loan segment, with share prices up 7.2% on average over the last month. SoFi is down 7.1% during the same time and is heading into earnings with an average analyst price target of $20.63 (compared to the current share price of $16.88).
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