A Glimpse of SoFi Techs's Earnings Potential

SoFi Techs SOFI is preparing to release its quarterly earnings on Tuesday, 2024-10-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect SoFi Techs to report an earnings per share (EPS) of $0.04.

Investors in SoFi Techs are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

In the previous earnings release, the company missed EPS by $0.00, leading to a 1.62% increase in the share price the following trading session.

Here's a look at SoFi Techs's past performance and the resulting price change:

Performance of SoFi Techs Shares

Shares of SoFi Techs were trading at $10.99 as of October 25. Over the last 52-week period, shares are up 48.87%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on SoFi Techs

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on SoFi Techs.

The consensus rating for SoFi Techs is Buy, derived from 2 analyst ratings. An average one-year price target of $10.0 implies a potential 9.01% downside.

Peer Ratings Comparison

This comparison focuses on the analyst ratings and average 1-year price targets of Kaspi.kz and Enova International, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Kaspi.kz, with an average 1-year price target of $183.0, indicating a potential 1565.15% upside.
• As per analysts' assessments, Enova International is favoring an Buy trajectory, with an average 1-year price target of $101.6, suggesting a potential 824.48% upside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Kaspi.kz and Enova International are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

SoFi Techs ranks highest in revenue growth among its peers. It ranks lowest in gross profit margin. It also has the lowest return on equity compared to its peers.

All You Need to Know About SoFi Techs

SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020, the company also offers payment and account services for debit cards and digital banking.

SoFi Techs: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining SoFi Techs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.2% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: SoFi Techs's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.33%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): SoFi Techs's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.14%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): SoFi Techs's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.02%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: SoFi Techs's debt-to-equity ratio is below the industry average. With a ratio of 0.54, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for SoFi Techs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.