Actions of SoFi it fell sharply on Tuesday and was hiatus for nearly three hours after the company accidentally released first-quarter results early.
The company said the report, which was scheduled to close on Tuesday, was released early due to human error, according to CNBC’s Kate Rooney. Stocks fell more than 18% when trading was suspended at 11:19 AM ET, but cut losses to 12% after trading resumed shortly after 2:00 PM
For the quarter, SoFi posted a loss of 14 cents per share, compared to an expected loss of 15 cents per share, according to analysts interviewed by Refinitiv. The company also exceeded revenue expectations, posting $ 322 million versus an estimate of $ 286 million.
Pedestrians walk by the SoFi Technologies headquarters on February 22, 2022 in San Francisco, California.
Justin Sullivan | Getty Images
However, its second quarter revenue forecast was weaker than expected, from $ 330 million to $ 340 million. Analysts, on average, estimated revenue of $ 343.7 million, according to FactSet’s StreetAccount.
SoFi CEO Anthony Noto told CNBC’s Rooney that he believes some of Wall Street’s projected numbers may be outdated following the company’s April 6 update, which lowered net revenue expectations for the full year.
The decline in the stock brought SoFi to approximately $ 4 billion in market capitalization. The stock has lost nearly 70% this year.
SoFi isn’t the only fintech stock that has come under pressure recently. Actions of Upstart AI lender fell more than 50% Tuesday after the company cut its full-year forecast. Actions of the most established PayPal have been halved this year, partly due to weak earnings indication the company issued in February.