SoFi Technologies stock falls on soft guidance

The Key Takeaways

• SoFi Technologies pointed to "macro assumptions" in giving weaker-than-expected quarterly and full-year guidance.
• Outlook offset the fourth quarter profit and sales which exceeded forecasts.
• Anthony Noto, the CEO of Anthony Noto Inc. said it was their best year yet.

Shares of SoFi Technologies (SOFI) plunged 10% Monday as the digital financial firm gave lower-than-expected guidance based on “macro assumptions” The future.

This provider of student loan and banking services is expecting earnings per common share to be $0.03 in the current quarter, and between $0.25-$0.27 by 2025. Visible Alpha surveyed analysts who expected first-quarter earnings per share (EPS) of $0.05, and full-year earnings of $0.28.

News of the better-than expected results in the fourth quarter was not enough to offset them. SoFi’s EPS was $0.29 with revenues up 19% over the past year to $734 millions. Visible Alpha had forecasts for both. 

Financial Services revenue soared 84% from $256.5 to 256.5 millions as the firm expanded their product line by 34%. Technology Platform Division revenue rose 6% from $102.8 to $417.8 millions. Origination revenue also increased by 66%.

CEO Anthony Noto called 2024 "SoFi's best year ever," and pointed to the performance of the Financial Services and Tech Platform segments, which made up a record 49% of the company's revenue.

SoFi Technologies finished the week on its highest level since fall 2021. Despite today's drop, they have more than doubled their value in the past year.

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