shares of SoFi technology (NASDAQ:SOFI) Shares plunged 9.9% by 12:15pm on Monday, even though the company reported beat results this morning.
Looking ahead to the first quarter of 2024, analysts expect SoFi to post earnings of just $0.01 per share on quarterly revenue of $556 million. In fact, earnings were double expectations at $0.02 per share, and sales were strong at $645 million. But stocks are still down.
First quarter financial report
We’re off to a good start, with first-quarter sales up 37% year over year. SoFi also turned into a profit from the previous year’s deficit.Total deposit amount in internet bank increased by 16% to a record $3 billion, and customers now rank as “high quality” with a median Fico The score is 774, making it a good candidate for a loan. (The company’s net interest margin is as high as 5.9%).
All of them are wonderful. What made things worse was the coaching.
Will SoFi stock be a sell?
Management expects sales to grow faster than expected in 2024, reaching approximately $2.4 billion, and profits will also increase. At least $0.08 per share, calculated in accordance with generally accepted accounting principles (GAAP). The problem is that SoFi announced second-quarter sales of only $555 million to $565 million, while Wall Street wants to see $580 million in sales. is.
That seems to have spooked investors, but I don’t think they need to worry. Assuming SoFi even hits the lower end of its target this year, sales will increase 89% and earnings will accelerate even further. In fact, earnings are expected to triple in 2025 and double again in 2026, by which time the company will be earning close to $0.50 a share.
Is $7 per share really too much for a stock with $0.50 in earnings? I don’t know about you, but for a fintech as fast growing as SoFi, it’s still 14x earnings after two years. seems cheap. Investors are selling SoFi stock today, but it looks like a real buy to me.
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rich smith has no position in any of the stocks mentioned. The Motley Fool recommends Fair Isaac. The Motley Fool has Disclosure policy.
Why SoFi Technologies stock fell 10% on Monday’s results Originally published by The Motley Fool
