SoFi Technologies (SOFI) Preliminary Q3 Results: Here's What to Expect

SoFi Technologies (SOFI) is scheduled to report its third quarter 2024 results on October 29. Wall Street analysts expect the company to report earnings per share of $0.04, a significant improvement from the loss of $0.29 in the year-ago quarter. According to data from the TipRanks forecast site, revenue is expected to reach $632 million, down 17% year-over-year.

SoFi Technologies is an online provider of a wide range of financial services, offering loans and other financial products to its members. As the third quarter approaches, it's worth noting that SoFi has beaten consensus EPS estimates in eight of the last nine quarters.

Impressive website traffic trend

Although analysts expect SOFI's sales to decline compared to the same quarter last year, the company's website traffic data points to strong results for the company in the upcoming third quarter. It should be noted that investors can use TipRanks' website traffic tool to gain insight into a company's upcoming earnings report. The tool provides information about how a company's website domain has performed over a period of time.

For SOFI, TipRanks' website traffic screener shows that traffic increased both sequentially and year-over-year in the third quarter. According to the tool, the number of visits to sofi.com increased by 67.08% compared to the same quarter last year and by 8.76% in the previous quarter. This increase in visits suggests that demand for the company's offerings remained strong during the quarter.

Key insights from TipRanks’ Bulls & Bears tool

TipRanks' Bulls Say, Bears Say tool provides insight into analyst perspectives on SoFi as the company approaches its third-quarter earnings report. Bulls are optimistic, pointing out that SoFi's second-quarter results beat Wall Street's revenue and profit expectations, driven by strong lending revenue that offset weaker performance in technology products. With competitive rates, low fees, and easy-to-use apps, SoFi is well-positioned to attract customers of traditional banks. Additionally, analysts noted that the SOFI platform significantly increased its membership, highlighting strong growth potential for future revenue.

On the other hand, bears noted that SOFI's forecast suggests a second consecutive decline in revenue and adjusted EBITDA, a trend not seen since at least 2021, causing concern among investors.

Options traders expect a Large Move

TipRanks' options tool provides a quick way to assess what options traders expect from the stock after the earnings report. The expected earnings movement is calculated using the at-the-money straddle of the options that expire closest to the announcement. Although this sounds complex, the tool does the calculations for you.

Currently, options traders are predicting a 13.01% swing in either direction.

Is SoFi Technologies a good stock to buy?

As for Wall Street, SoFi Technologies stock has a consensus Hold rating based on four buy, six hold, and three sell ratings assigned in the past three months. At $8.63, the average price target for SoFi Technologies shares implies a downside potential of 21.47%. SOFI shares have gained 58% over the past year.

See more SOFI analyst ratings

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