Digital financial services company SoFi Technologies (NASDAQ: SOFI) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.
SoFi beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $854.9 million, up 42.8% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and . It reported 11.75 million active customers, up 33.9% year on year.
Is SoFi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting SoFi’s revenue to grow 29.7% year on year to $904.4 million, in line with the 29.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SoFi has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.6% on average.
Looking at SoFi’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. LendingClub delivered year-on-year revenue growth of 31.9%, beating analysts’ expectations by 3.9%, and Enova reported revenues up 16.3%, in line with consensus estimates. LendingClub traded up 10.5% following the results while Enova was also up 9.5%.
Read our full analysis of LendingClub’s results here and Enova’s results here.
Investors in the consumer finance segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. SoFi is up 6.1% during the same time and is heading into earnings with an average analyst price target of $23.25 (compared to the current share price of $29.23).
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