SoFi Stock Soars 7% on Strong Student Loan Originations and Guidance Boost

Tiger_Newspress
2023-10-30

$SoFi Technologies Inc.(SOFI)$ shares surged 13.1% in morning trading after the financial-technology company posted a large revenue beat for the latest quarter and gave an upbeat outlook.

The company notched a third-quarter net loss of $266.7 million, or 29 cents a share, whereas it posted a loss of $84.4 million, or 9 cents a share, in the year-earlier period. Analysts tracked by FactSet were modeling an 8-cent loss per share.

SoFi said that, excluding the impact of non-cash impairment charges, it would have seen a 3-cent loss per share, “which reinforces our confidence in achieving positive GAAP net income in the fourth quarter of 2023.”

SoFi also posted earnings before interest, taxes, depreciation and amortization (Ebitda) of $98 million, compared with $44 million on the non-GAAP metric in the year-earlier quarter. The FactSet consensus was for $65 million.

Revenue rose to $537 million from $424 million a year before, while analysts were expecting $518 million.

The company saw $3.9 billion in personal-loan originations, up 38% from a year before. Home-loan originations were up 64% to $355.7 million, as SoFi “began to benefit from the integration of Wyndham Capital Mortgage with improved fulfillment capacity from our acquisition at the beginning of the second quarter,” according to its release.

SoFi saw student-loan originations climb to $919.3 million, up 101% from a year prior.

For the full year, SoFi models $2.045 billion to $2.065 billion in adjusted net revenue, above a prior forecast that called for $1.974 billion to $2.034 billion. The FactSet consensus was for $2.026 billion.

SoFi also now models $386 million to $396 million in full-year adjusted Ebitda, up from an earlier forecast that called for $333 million to $343 million. Analysts were looking for $344 million.

$(SOFI)$
Are you bullish on Sofi after earnings beats?
SoFi posted a massive third-quarter revenue beat and raised its outlook for the full year. The company reported $531 million in revenue, exceeding estimate of $512.1 million. Its revenue was boosted by higher-than-expected student loan originations for the quarterly period. ---------------------- ● Are you bullish or bearish on Sofi after its earnings beats? ● What's your target price for Sofi?
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