Latest News

SoFi Stock Surges. A Strong Beat and Raise Earns It a Price Target Boost.

Text size

SoFi Technologies

stock jumped in premarket trading on Wednesday, a day after the financial services company posted record quarterly revenue and raised guidance for fiscal 2022.

SoFi (ticker:


) reported a second-quarter adjusted loss of 12 cents a share on $356 million in revenue. Analysts surveyed by FactSet were forecasting a loss of 14 cents a share and revenue of $340.8 million.

“We generated record adjusted net revenue, which was up 50% year over year, and our eighth consecutive quarter of positive adjusted EBITDA, which doubled sequentially,” said CEO Anthony Noto. “While the political, fiscal, and economic landscapes continue to shift around us, we have maintained strong and consistent momentum in our business.”

Management continues to expect strong growth in the second half of the year, with full-year adjusted net revenue of $1.508 billion to $1.513 billion. Previous guidance was for revenue of $1.505 billion to $1.51 billion.

Adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization, will range between $104 million to $109 million, up from $100 million to $105 million, the company said.

The company’s strong performance earned it a price target raise from Mizuho Securities. Analyst Dan Dolev increased his target to $8 from $7.

“Following some anticipation so far this year, it was nice to see a strong beat & raise by SOFI with strength across the board & a nice increase to the [fiscal year] guide,” Dolev wrote.

He was encouraged by the company’s growth in personal loans, as well as higher average credit scores, muted credit delinquencies, and a quarter-over-quarter acceleration in products and member numbers.

Investors were also responding positively, with the stock up 12% in premarket trading to $7.17. The shares have lost about 60% this year, battered by sluggish growth in the company’s lending segment. Student loan and home loan originations were down by more than 50% year over year in the quarter, management said, as the company faces headwinds from rising interest rates and the ongoing moratorium on student loan repayment. The company now expects the federal student loan moratorium to last until January 2023.

Write to Sabrina Escobar at

AT&T Stock: Is It A Buy After Recent Earnings Beat? Here’s What Earnings, Charts Show

Previous article

Here are 3 big reasons why a 2022 recession would be like no other

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News