SoFi Technologies (SOFI) is set to announce its Q4 2024 earnings on January 27. Shares of this fintech platform and online bank have rallied more than 127% over the past year, driven by solid Q3 results, strong execution, and the company’s plan to shift towards fee-based revenue streams. Wall Street analysts expect the company to report earnings per share of $0.04, up from $0.02 per share in the same quarter last year.
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However, revenue is expected to reach $674.9 million, representing a 23% year-over-year decline, according to data from the TipRanks Forecast page below. As Q4 approaches, it’s worth noting that SoFi has exceeded consensus EPS estimates in eight of the past nine quarters.
Analysts’ Divergent Views on SOFI Ahead of Q4 Results
Ahead of SoFi’s Q4 results, analysts are split on the stock’s outlook. Recently, KBW analyst Tim Switzer downgraded SoFi to Sell from Hold, citing concerns over the stock’s stretched valuation. While he acknowledged factors like the lower interest rate environment and SoFi’s improved scale and profitability, these positives were not enough to offset his concerns.
On the contrary, last week, William Blair analyst Andrew Jeffrey initiated coverage on SOFI stock with an Outperform rating. He pointed out the rising demand for alternatives to traditional consumer finance and bank cards. Jeffrey believes younger people are looking for clearer financial experiences, and top digital finance companies like SoFi offer better user experiences and more creative products than traditional banks.
Website Traffic Shows Mixed Trend
SoFi Technologies’ website traffic data indicates year-over-year growth for the company in Q4, although it showed a decrease sequentially. It should be noted that investors can use TipRanks’ Website Traffic Tool to gain insights into a company’s upcoming earnings report. The tool offers information on how a company’s website domain performed over a specific time frame.
According to TipRanks’ website traffic tool, the number of visits to sofi.com increased 16.66% from the year-ago quarter. However, it’s important to highlight that the total visits decreased 3.7% sequentially.
Options Traders Anticipate a Large Move
TipRanks’ Options tool offers a quick way to gauge what options traders anticipate from the stock following its earnings report. The expected earnings move is calculated using the at-the-money straddle of the options set to expire closest to the announcement. While this may sound complex, the tool handles the calculations for you.
Currently, it indicates that options traders are predicting a 14.55% swing in either direction.
Is SoFi Technologies a Good Stock to Buy?
Turning to Wall Street, SoFi Technologies stock has a Hold consensus rating based on six Buy, five Hold, and four Sell ratings assigned over the last three months. At $13.19, the average SoFi Technologies stock price target implies downside potential of 25.01%.
