SOFI - SoFi Technologies Q2 Earnings Preview: It Should Beat Again

2024-07-21 01:19:07 ET

Summary

• As I predicted last time, SoFi Technologies beat Q1 consensus forecasts with strong financial results. Unfortunately, the stock price didn't respond positively.
• I think SoFi is performing well in terms of its balance sheet, sales growth, and strengthening margins.
• I continue to believe that management's strategic vision for the company's development should lead to continued momentum in its business.
• In my view, SoFi has a good chance of beating these forecasts for the 2nd quarter, thanks to the continued acceleration in growth and the relatively moderate expectations priced-in today.
• From what I see to date, I believe that the decline in SoFi stock over the past few months may have been overdone already. SOFI is still a "Buy".

Thesis Update

I initiated coverage of SoFi Technologies ( SOFI ) stock at the end of February 2024 with a "Buy" rating. My second article was written at the end of April 2024 - I confirmed my bullish rating and predicted that the company would beat consensus forecasts for Q1 (which hadn't yet been published at that time). I anticipated that the company's EPS in the first quarter could be twice as much as the consensus estimate. As history has shown, SoFi indeed managed to beat the consensus forecasts, delivering an EPS beat , which was one of the "largest" surprises (compared to the initially estimated numbers) in recent quarters....

For further details see: