SoFi Technologies reported its first profit using generally accepted accounting principles, or GAAP, accounting as fourth quarter revenue topped Wall Street targets. SoFi stock popped as 2024 earnings guidance also came in above expectations.
In the December quarter, SoFi said it earned 2 cents with revenue up 34% to $594.2 million. Analysts had predicted a break-even quarter on revenue of $572 million. A year earlier, SoFi lost 5 cents per share.
For 2024, the company forecast profit in a range of 7 cents to 8 cents, up from a 36-cent loss in 2023. Analysts had modeled profit of 5 cents in 2024.
Sofi Stock Jumps
On the stock market today, SoFi stock popped 20.2% to close at 9.16.
San Francisco-based SoFi provides college student loans as well as home loans and personal loans. It also holds a banking license.
SoFi stock owns a Relative Strength Rating of 64 out of a best-possible 99.
Heading into the SoFi earnings report, shares were down 23% in 2024 but up 28% over the past 52 weeks, according to FactSet.
Biden Student Loan Initiatives
Shares in SoFi underperformed in 2021 and 2022 amid lower revenue from federal student loan refinancing.
The Biden administration has provided debt relief to student borrowers. If Republicans win control of Congress in 2024, they could roll back Biden's student loan forgiveness and repayment initiatives.
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