SoFi technology (Sophie) reported its first profit on an adjusted basis, with fourth-quarter sales exceeding Wall Street targets. SoFi stock soared after its 2024 profit outlook also exceeded expectations.
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SoFi reported revenue of $594.2 million in the December quarter, an increase of 34%, and an adjusted profit of 2 cents. Analysts had expected breakeven quarterly sales of $572 million. A year ago, SoFi had an adjusted loss of 5 cents per share.
The company expects adjusted earnings in 2024 to be in the range of 7 cents to 8 cents, up from a loss of 36 cents in 2023. Analysts had modeled adjusted earnings of 5 cents in 2024.
Sofi stock soars
On the stock market today, SoFi stock soared 16% to 8.84 in early trading.
San Francisco-based SoFi offers mortgages and personal loans, as well as loans for college students. We also hold a banking license.
SoFi stock has a relative strength rating of 64 out of 99.
Heading into SoFi’s earnings report, the stock was down 23% in 2024, but up 28% over the past 52 weeks, according to FactSet.
Biden’s commitment to student loans
SoFi stock underperformed in 2021 and 2022 as income from federal student loan refinancing declined.
The Biden administration has provided debt relief for student loan borrowers. If Republicans gain a majority in Congress in 2024, they could repeal Biden’s student loan forgiveness and repayment plan.
Follow Reinhard Krauss on X, formerly known as Twitter. @reinhardtk_tech Get the latest information on artificial intelligence, cybersecurity, and cloud computing.
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