It hasn’t been a good start to the new year for SoFi (NASDAQ:SOFI), as shares of the fintech company are down by about 14% so far. However, SoFi has confirmed that it will report its fourth-quarter earnings on Monday, Jan. 29, before the market open.
The fourth quarter is set to be an extremely important milestone for the company, as analysts expect it to report its first-ever profitable quarter with GAAP earnings per share (EPS) of 1 cent. On top of that, analysts have forecasted revenue of $572 million, implying year-over-year (YOY) growth of 29%.
If these estimates hold true, SoFi’s 2023 full-year earnings would equate to a GAAP EPS loss of 35 cents and revenue of $2.056 billion, up by 33.44% YOY.
SOFI Stock: SoFi to Report Earnings on Jan. 29
Upcoming guidance is also just as important as current earnings. For Q1 of 2024, analysts have forecasted revenue of $576 million, up by 25.1% YOY, and a GAAP EPS loss of one cent.
Furthermore, analysts expect SoFi to be profitable for the full year of 2024 with a GAAP EPS estimate of 6 cents and total revenue of $2.522 billion, up by 22.7% YOY.
Earlier this week, SOFI stock plunged lower after Keefe, Bruyette & Woods (KBW) analyst Mike Perito downgraded shares to “underperform” with a price target of $6.50, which was lowered from $7.50. Perito’s price target implies downside of about 21% from current prices. Perito’s downgrade sent shockwaves throughout the SoFi community due to his high ranking on analyst tracking website TipRanks. He carries a 63% success rate and an average one-year return of 14.9%.
Perito believes that the rate cuts could detrimentally affect SoFi in the short term before eventually reducing the company’s cost of capital and deposit costs. For 2024, he expects $2.299 billion in revenue, which is about 9% lower than the consensus analyst estimate.
SoFi has an average price target of $9.12 among 17 analyst with coverage, implying upside of about 10% from current levels. The lowest price target is $3, while the highest is $15.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
