SoFi’s stock powers toward best day in 18 months after big earnings milestone



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SoFi Technologies Inc. shares were surging in premarket trading Monday after the financial-technology company rode surging lending volumes to better-than-expected profitability for the latest quarter.

The stock was up more than 10% in premarket action.

The company posted fourth-quarter net income of $48 million, or 2 cents a share, whereas it generated a loss of $40 million, or 5 cents a share, in the year-prior period. Analysts tracked by FactSet expected the company to break even on a per-share basis.

SoFi
SOFI,
+19.88%
also reported adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $181 million, up from $70 million in the year-before period. The FactSet consenus was for $142 million.

Total net revenue came in at $615 million, up 35% from a year prior. Analysts had been looking for $575 million.

Origination volumes for personal loans were up 31% in the fourth quarter, while such volumes for student loans and home loans were up 95% and 193%, respectively.

The company posted 19% growth in deposits during the fourth quarter to reach $18.6 billion. “As a result of this growth in high quality deposits, we have benefited from a lower cost of funding for our loans,” Chief Executive Anthony Noto said in a release.

The company expects to see $550 million to $560 million of adjusted net revenue in the first quarter, along with $110 million to $120 million of adjusted Ebitda. Analysts were modeling $578 million in adjusted net revenue and $125 million in adjusted Ebitda.

Management anticipates that the company will continue to be profitable on a GAAP basis into the first quarter, calling for $10 million to $20 million in GAAP net income, whereas the FactSet consensus was for $8 million.

For the full year, the company expects GAAP earnings per share of 7 cents to 8 cents, while analysts had been modeling 5 cents.



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