Affirm (NASDAQ:AFRM) Posts Earnings Results, Beats Expectations By $4.27 EPS

Key Points

• Affirm beat earnings expectations: The company reported quarterly EPS of $4.62, well above the $0.35 consensus estimate, while revenue totaled $1.07 billion, below expectations of $1.11 billion.
• Shares rose 1.3% to $77.49 following the results. Affirm has a consensus “Moderate Buy” rating and an average analyst price target of $93.62, although views remain mixed.
• Growth and valuation remain key considerations: The Shopify partnership’s expansion into Australia could broaden Affirm’s reach, while the stock’s high valuation and an executive’s sale of 100,000 shares may add to investor caution.

Affirm (NASDAQ:AFRM - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $4.62 EPS for the quarter, topping the consensus estimate of $0.35 by $4.27, FiscalAI reports. Affirm had a return on equity of 11.17% and a net margin of 9.63%.The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.11 billion.

Affirm Stock Up 1.3%

Shares of NASDAQ:AFRM traded up $1.03 during trading on Thursday, hitting $77.49. The stock had a trading volume of 7,619,497 shares, compared to its average volume of 5,183,616. The firm's fifty day moving average is $77.30 and its 200 day moving average is $64.36. The company has a quick ratio of 11.32, a current ratio of 11.32 and a debt-to-equity ratio of 2.39. The company has a market capitalization of $25.95 billion, a PE ratio of 70.45, a PEG ratio of 3.16 and a beta of 3.71. Affirm has a 12 month low of $42.10 and a 12 month high of $100.00.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on AFRM shares. Sanford C. Bernstein initiated coverage on shares of Affirm in a research report on Tuesday, July 21st. They set an "outperform" rating and a $100.00 price target on the stock. Stephens boosted their price objective on Affirm from $55.00 to $75.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. TD Cowen raised their price target on Affirm from $90.00 to $117.00 and gave the stock a "buy" rating in a report on Tuesday, July 7th. The Goldman Sachs Group boosted their price objective on shares of Affirm from $90.00 to $106.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Finally, Morgan Stanley upped their target price on Affirm from $79.00 to $80.00 and gave the stock an "equal weight" rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $93.62.

Trending Headlines about Affirm

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Shopify expansion supports growth prospects: Affirm and Shopify launched Shop Pay Installments in Australia, giving Australian consumers access to Affirm-powered installment payments through Shopify’s checkout. The partnership could expand Affirm’s merchant reach, transaction volume and international growth opportunity. Affirm and Shopify launch Shop Pay Installments in Australia
• Positive Sentiment: Some analysts remain constructive: Affirm has a consensus analyst recommendation of “Moderate Buy,” while Morgan Stanley raised its price target from $79 to $80 and maintained an Equal Weight rating. The increase suggests limited but positive upside from recent trading levels. Affirm receives Moderate Buy consensus
• Neutral Sentiment: Earnings are the main near-term catalyst: Recent coverage highlights Affirm’s upcoming results and its 76% earnings-per-share beat in the prior quarter. Investors are looking for evidence that the company can sustain strong growth and profitability, but the supplied reports do not include the latest results. Affirm prior EPS beat
• Neutral Sentiment: Analyst views remain divided: RBC Capital Markets assigned a Hold rating, and other coverage describes analysts as conflicted. The stock has recently traded in a narrow range, leaving earnings guidance and management commentary likely to determine its next major move. RBC Capital Hold rating
• Negative Sentiment: Zacks downgrade adds pressure: Zacks Research cut Affirm from “Strong Buy” to “Hold,” potentially limiting enthusiasm ahead of earnings and reinforcing concerns that the current valuation already reflects substantial growth expectations. Zacks downgrades Affirm

Insider Buying and Selling at Affirm

In other news, COO Michael Linford sold 100,000 shares of the firm's stock in a transaction on Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the completion of the transaction, the chief operating officer directly owned 117,984 shares in the company, valued at $9,443,439.36. This trade represents a 45.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Affirm

Several hedge funds and other institutional investors have recently modified their holdings of AFRM. Corient Private Wealth LLC increased its holdings in Affirm by 134.4% in the 4th quarter. Corient Private Wealth LLC now owns 39,918 shares of the company's stock worth $2,971,000 after acquiring an additional 22,886 shares in the last quarter. Alberta Investment Management Corp purchased a new position in shares of Affirm during the fourth quarter valued at about $5,277,000. Strive Financial Group LLC bought a new stake in Affirm in the 4th quarter worth approximately $33,000. Vident Advisory LLC raised its stake in Affirm by 3.7% during the fourth quarter. Vident Advisory LLC now owns 15,874 shares of the company's stock valued at $1,182,000 after purchasing an additional 572 shares in the last quarter. Finally, Empowered Funds LLC lifted its stake in shares of Affirm by 25.7% in the 4th quarter. Empowered Funds LLC now owns 13,308 shares of the company's stock valued at $991,000 after purchasing an additional 2,720 shares during the last quarter. 69.29% of the stock is owned by institutional investors.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source