Affirm Jumps On Earnings Results, Guidance

Affirm Jumps On Earnings Results, Guidance

Consumer finance company Affirm assets (AFRM) reported a smaller-than-expected loss in the March quarter on Wednesday, while revenue and other financial indicators beat Wall Street targets. The advice exceeded expectations.




X



The San Francisco-based company released its third-quarter results before the market opened.

In Affirm’s earnings report, the company reported a loss of 43 cents per share for the quarter ended March 31. That compares to a loss of 86 cents per share in the year-ago period. Analysts polled by FactSet had forecast a loss of 57 cents per share.

Affirm said revenue jumped 51% to $576 million versus estimates of $496.5 million. Revenue less transaction expenses came in at $231 million versus estimates of $217 million.

The company said gross merchandise volume increased 36% to $6.3 billion, compared to an estimated $6.01 billion.

The new Affirm Card generated $35.67 million in revenue, up 21%, compared to estimates of $37 million.

Buy now, pay later Leader’s Guides

For the current June quarter, Affirm said it expects revenue of $595 million at the midpoint of its outlook, beating estimates of $579 million. It forecast a GMV of $6.85 billion, up from estimates of $6.65 billion.

AFRM stock had fallen 27% in 2024 before the release of fiscal third-quarter results. But AFRM stock returned above its 50-day moving average.

Affirm is one of the largest providers of Buy Now, Pay Later installment payment services. With BNPL options, consumers repay their purchases in monthly installments, either with low interest or no interest at all. Affirm is also expanding into other financial services.

The initial public offering of AFRM stock in January 2021 raised $1.2 billion. Affirm makes most of its revenue from transaction fees paid by online retailers. Additionally, Affirm earns about a third of its revenue from interest paid by consumers.

Affirm actions

On the stock market todayAffirm shares climbed 4.6% to 36.50, signaling a strong move from the 50-day line.

AFRM stock soared in late 2023, but fell through most of 2024.

Heading into Affirm’s earnings report, the stock had a Relative Strength Rating of 97 out of a best-possible 99, according to IBD Stock Check.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

YOU MIGHT ALSO LIKE:

Want to trade options? Here are the basics to get started

IBD Digital: Unlock IBD’s premium stock lists, tools and analysis today

Learn to Time the Market with IBD’s ETF Market Strategy

Watch IBD’s “Breaking Out Today” list for companies reaching new buying points

Futures: Shopify, Uber plunge, but 3 stocks flash buy signals on earnings



Source Reference

Latest stories