Affirm (NASDAQ:AFRM) Announces Earnings Results, Beats Expectations By $0.27 EPS

Affirm (NASDAQ:AFRM) released its quarterly earnings data on Wednesday. The company reported ($0.43) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.70) by $0.27, Briefing.com reports. The firm had revenue of $576.00 million during the quarter, compared to analysts’ expectations of $549.99 million. Affirm had a negative return on equity of 25.10% and a negative net margin of 39.19%. The business’s revenue for the quarter was up 51.2% on a year-over-year basis. During the same quarter last year, the firm earned ($0.69) earnings per share. Affirm updated its Q4 2024 guidance to EPS.

Affirm Stock Up 10.2 %

Shares of AFRM opened at $34.81 on Friday. The business’s 50 day simple moving average is $34.54 and its 200-day simple moving average is $35.93. The company has a debt-to-equity ratio of 2.35, a current ratio of 11.49 and a quick ratio of 11.49. Affirm has a one year low of $11.57 and a one year high of $52.48. The company has a market capitalization of $10.68 billion, a P/E ratio of -13.98 and a beta of 3.56.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. raised Affirm from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $41.00 to $43.00 in a research report on Thursday. Barclays reduced their price target on Affirm from $50.00 to $41.00 and set an “overweight” rating for the company in a research report on Tuesday, April 16th. BMO Capital Markets boosted their price target on Affirm from $44.00 to $47.00 and gave the stock a “market perform” rating in a research report on Monday, February 12th. The Goldman Sachs Group boosted their price target on Affirm from $18.00 to $20.00 and gave the stock a “neutral” rating in a research report on Friday, February 9th. Finally, Royal Bank of Canada reduced their price target on Affirm from $50.00 to $43.00 and set a “sector perform” rating for the company in a research report on Thursday. Six analysts have rated the stock with a sell rating, eight have given a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $27.58.

Insiders Place Their Bets

In other news, Director Keith Rabois sold 9,276 shares of the firm’s stock in a transaction on Wednesday, May 1st. The stock was sold at an average price of $32.12, for a total value of $297,945.12. Following the completion of the sale, the director now directly owns 60,000 shares in the company, valued at $1,927,200. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 13.05% of the company’s stock.

About Affirm

Affirm Holdings, Inc operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months.