Digital financial services company SoFi Technologies (NASDAQ: SOFI) will be reporting results this Wednesday before market open. Here’s what to look for.
SoFi beat analysts’ revenue expectations last quarter, reporting revenues of $1.01 billion, up 37% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and .
Is SoFi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting SoFi’s revenue to grow 36.4% year on year, improving from the 32.7% increase it recorded in the same quarter last year.
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.
Looking at SoFi’s peers in the personal loan segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FirstCash delivered year-on-year revenue growth of 25.7%, beating analysts’ expectations by 4.8%, and LendingClub reported revenues up 15.9%, topping estimates by 1.2%. FirstCash traded up 3.3% following the results.
Read our full analysis of FirstCash’s results here and LendingClub’s results here.
There has been positive sentiment among investors in the personal loan segment, with share prices up 13% on average over the last month. SoFi is up 25% during the same time and is heading into earnings with an average analyst price target of $23.48 (compared to the current share price of $18.94).
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