SoFi Stock Rallies on Beat and Raise, Results Seen as Strong
2022.08.03 16:45
SoFi (SOFI) Stock Rallies on Beat and Raise, Results Seen as Strong
By Senad Karaahmetovic
Shares of SoFi Technologies (NASDAQ:SOFI) are up over 11% in premarket trading Wednesday after the company’s Q2 revenue and EBITDA came above consensus estimates.
SoFi reported Q2 net revenue of $356.1 million, beating the analyst consensus of $339.8 million. Adjusted EBITDA stood at $20.3 million in the quarter, almost double the consensus estimate of $10.3 million.
Looking ahead to Q3, the company expects adjusted net revenue between $830 million and $835 million, up 49-50% YoY, and adjusted EBITDA in the range of $75 million to $80 million.
For the full fiscal year, SoFi expects adjusted net revenue of $1.51 billion, slightly above analyst expectations of $1.49 billion. The personal finance company expects FY adjusted EBITDA in the range of $104 million to $109 million, up from the previous forecast of $100 million to $105 million, while analysts were estimating $97.2 million.
A Mizuho analyst raised the price target to $8 from the prior $7 to reflect “strong quarter”.
“Following some anticipation so far this year, it was nice to see a strong beat & raise by SOFI with strength across the board & a nice increase to the FY guide. Key highlights include yet again over 20% Q/Q Personal Loan growth, higher average FICO score, muted delinquencies, and a Q/Q acceleration in both products and member numbers,” the analyst said in a note.
A Jefferies analyst reflected on the raised guidance, which “we believe will be a considerable positive relative to expectations that were likely for a modest guide-down given volatile rates and capital markets.”
“The guide shows that SOFI is being well managed in a turbulent environment and that the business model is exhibiting more-than-expected resilience,” the analyst added.
