• 19
  • 2
  • Favorite

SoFi Stock Surges 10% After Earnings Beat As Personal-Lending Business Keeps Roaring

Tiger Newspress2023-05-01

Shares of SoFi Technologies Inc. roared 10.9% higher in premarket trading Monday after the financial-services company easily topped earnings expectations for its latest quarter while seeing continued strength in personal lending.

The company reported a first-quarter net loss of $34 million, or 5 cents a share, whereas it recorded a loss of $110 million, or 14 cents a share, in the year-prior period. Analysts tracked by FactSet were expecting 8 cents a share in GAAP earnings.

SoFi (SOFI) also posted adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $76 million, up from $9 million a year before and above the $42 million that analysts tracked by FactSet had been expecting.

GAAP revenue rose to $472 million from $330 million, while analysts were anticipating $436 million.

The company saw more than 433,000 new member additions in the period, bringing its total member count up to almost 5.7 million by the end of the quarter.

Personal loan origination volumes shot up 46% to $2.95 billion, which the company said in a release was "aided by years of investment in technology to automate and accelerate the application-to-approval process for qualified borrowers and constant testing of risk controls and underwriting models to maintain high credit quality."

The strength in personal lending helped to make up for softer trends in the student-lending and home-lending segments. SoFi saw $525 million in student-loan origination volume during the first quarter, down 47% from a year before, and $90 million in home-loan origination volume, down 71%.

See also: SoFi's campaign to stop the student-loan payment pause that helps its own customers

SoFi's student-lending business has been weighed down by the student-loan moratorium, while the home-loan business has felt pressure from interest-rate trends and continued issues with SoFi's fulfillment partners.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment2

  • MasterTigeress
    ·2023-05-01
    We grind to rewind 
    Reply
    Report
  • Nana30
    ·2023-05-01
    It's a great stock For long time.. holding 1.4K $SOFI . Will keep it for years. 
    Reply
    Report
    Fold Replies
    • BabaFool
      Its okay i am holding 5x more than you 😂
      2023-05-01
      Reply
      Report
    • Andychen15
      Go back to 5 plus EOD:)
      2023-05-01
      Reply
      Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial