Affirm (NASDAQ:AFRM) Releases Quarterly Earnings Results, Beats Estimates By $0.27 EPS

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

Affirm Trading Up 5.0 %

NASDAQ:AFRM traded up $1.58 during midday trading on Thursday, hitting $33.16. 5,125,740 shares of the company traded hands, compared to its average volume of 9,131,777. The company has a current ratio of 11.49, a quick ratio of 11.49 and a debt-to-equity ratio of 2.35. The firm’s fifty day moving average is $34.60 and its 200-day moving average is $35.93. The firm has a market capitalization of $10.18 billion, a P/E ratio of -12.68 and a beta of 3.56. Affirm has a 12-month low of $11.57 and a 12-month high of $52.48.

Insider Activity

In related news, Director Keith Rabois sold 9,276 shares of the company’s stock in a transaction dated Thursday, March 14th. The shares were sold at an average price of $34.39, for a total transaction of $319,001.64. Following the transaction, the director now directly owns 78,552 shares in the company, valued at approximately $2,701,403.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 13.05% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have commented on AFRM. Royal Bank of Canada boosted their target price on Affirm from $26.00 to $50.00 and gave the stock a “sector perform” rating in a report on Friday, February 9th. Stephens boosted their price objective on shares of Affirm from $6.00 to $16.00 and gave the stock an “underweight” rating in a report on Friday, February 9th. JPMorgan Chase & Co. raised Affirm from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $41.00 to $43.00 in a research report on Thursday. Needham & Company LLC reissued a “hold” rating on shares of Affirm in a report on Thursday. Finally, BMO Capital Markets upped their target price on shares of Affirm from $44.00 to $47.00 and gave the company a “market perform” rating in a report on Monday, February 12th. Six investment analysts have rated the stock with a sell rating, eight have issued a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Affirm presently has a consensus rating of “Hold” and an average target price of $27.97.

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.