- SoFi(SOFI) will report second-quarter earnings on Aug. 2.
- The consensus revenue estimate is $346.48 million.
- Shares of SOFI stock are down more than 50% year-to-date.
SoFi(NASDAQ:SOFI) stock is in full focus after the company confirmed Aug. 2 as the date for its second-quarter earnings results. A conference call will follow the earnings results, which will be released after the market closes. Shares of SOFI stock are up about 20% the past month in light of increases in the benchmark indices and a swath of news.
The company announced at its annual meeting that shareholders had voted to give the board discretionary authority to enact areverse stock split. Theratioof the reverse split will fall somewhere between 1-for-2 and 1-for-10. SoFi noted a higher stock price could possibly attract more analyst coverage and institutional investments.
Earlier this week, SoFi disclosed plans toresell $1 billion of capital. That includes instruments such as common stock, warrants, stock options and more. Furthermore, the proceeds will be used for “working capital, acquisitions, retirement of debt and other business opportunities.” This move has stirred rumors of a potential acquisition, although nothing has been confirmed yet.
With that in mind, let’s get into the details of SoFi’s Q2 earnings.
Dear SOFI Stock Fans, Mark Your Calendars for Aug. 2
For Q2, the consensus analyst estimate for revenue is$346.48 million, which would imply year-over-year (YOY) growth of 46%. In addition, the consensus estimate for earnings per share (EPS) is aloss of 13 cents. Profitability remains an issue for the fintech company, although it reported an EPS loss of 48 cents a year ago and a loss of 14 cents last quarter. If the estimate for EPS holds true, it would signal a path toward profitability.
For Q3 guidance, analysts are expecting $390.34 million in revenue and an EPS loss of 9 cents. The revenue estimate would imply YOY growth of 55%.
During the previous quarter, SoFi noted that it expects the Biden administration toextend the student loan moratoriumbeyond August. This would mark the seventh extension if true. As a result, SoFi incorporated an extension of the moratorium in its full year financial guidance during Q1. Student loan origination volume came in at $983.8 million during Q1, or 29.6% of total origination volume. Personal loan volume came in at $2 billion, while home loans tallied in at $312 million.
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