Financial technology firm SoFi Technologies (SOFI) has announced its second consecutive quarter of profitability but issued weak forward guidance, sending its stock down 4% as a result.
For the first quarter of the year, SoFi reported earnings per share of $0.02 U.S., beating Wall Street forecasts of $0.01 U.S.
Revenue in the period came in at $580.65 million U.S., which topped analysts’ estimates of $555 million U.S.
SoFi is an online lender that operates in three business segments: lending, which includes student, personal, and home loans; financial services; and a technology platform.
Revenue in the company’s financial services and technology platform rose 54% in Q1, while revenue generated from the lending side of the business was flat year over year.
The lending business has been harmed by, among other things, student loan forgiveness in the United States.
Looking ahead, SoFi said that for the current second quarter of the year, it expects to report revenue of $555 million U.S. to $565 million U.S.
The Q2 revenue guidance is less than the $581 million U.S. that analysts had penciled in for the company.
For all of this year, SoFi forecasts earnings per share of $0.08 U.S. to $0.09 U.S., which is inline with analysts’ estimates.
Prior to today (April 29), SoFi’s stock had declined 19% on the year to trade at $7.87 U.S. per share.
