Affirm Holdings (AFRM) stock is up by more than 30% at last check in Thursday's session after the leading buy now, pay later (BNPL) company beat top- and bottom-line expectations for its fiscal fourth quarter and issued a strong outlook for the quarter ahead.
In the three months ended June 30, Affirm's revenue increased 48% year-over-year to $659.2 million, driven by gross merchandise volume (GMV) growth of 31% to $7.2 billion. The company said its net loss per share narrowed to 14 cents from 69 cents in the year-ago period.
"We delivered excellent results in both the fourth fiscal quarter as well as full 2024 fiscal year," said Affirm CEO Max Levchin in a statement. "We grew GMV at a rate exceeding 30% and revenue at a rate exceeding 45% – in both the quarter and the fiscal year."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Affirm's results topped analysts' expectations. Wall Street was anticipating revenue of $604 million and a net loss of 51 cents per share, according to CNBC.
For the first quarter of fiscal 2025, Affirm said it anticipates revenue in the range of $640 million to $670 million, well ahead of analysts’ expectations of $625 million.
“By the end of this calendar year, we expect that Affirm will be natively integrated into four of the top digital wallets in North America," Levchin said. "Yet, with GMV barely over 2% of U.S. and Canadian e-commerce, we've only just scratched the surface of our opportunity.”
Levchin also announced a new goal of achieving profitability on a GAAP basis by the fourth quarter of fiscal 2025 and maintaining GAAP profitability from that point forward.
Is Affirm stock a buy, sell or hold?
Heading into today's session, Affirm was down nearly 36% for the year to date. Unsurprisingly, Wall Street has been on the sidelines when it comes to the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for AFRM stock is $36.97, representing a discount of more than 10% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm Wedbush is one of the more bearish outfits on AFRM stock with an Underperform rating (equivalent to a Sell) and a $20 price target.
"Affirm reported a solid quarter and provided a better than expected guide for fiscal 2025, which included anticipated GAAP profitability by the end of fiscal 2025,” said Wedbush analyst David Chiaverini said in a note this morning. "While results this quarter were solid and the outlook better than expected, we maintain our Underperform rating as we believe consumer lenders such as Affirm should be valued more in line with other consumer finance balance sheet lenders."
Related Content
- Salesforce Reports Earnings Beat, CFO Exit: What to Know
- Should You Buy Nvidia Stock After Earnings?
- Can Buy Now, Pay Later Plans Help You Build Credit?
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market TodayThe S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
-
New $6,000 'Senior Bonus' Deduction: What It Means for Taxpayers Over Age 65Tax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market Today
The S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
-
SPACs, SMRs and How to Invest in the Nuclear InsurgencyBig nuclear deployments are in process, but small modular reactors could be a better way to meet rapidly rising electric power demand.
-
10 Ways to Stay Safe From Grandparent Scams and Other Fraud, Courtesy of a Financial PlannerScams are increasingly hard to detect, and anyone can be fooled, from older people to educated professionals. Here are 10 ways to avoid becoming a victim.
-
This Is How the Student Loan Bubble Is Primed to Pop, From a Student Funding ExpertFueled by easy money, inflated tuition and high default rates, the student loan bubble mirrors the 2008 subprime mortgage crisis. We could be headed for a potential financial collapse. What can we do?
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Klarna IPO: Should You Buy KLAR Stock?The Klarna IPO is expected to be one of the biggest offerings of the year, with the buy-now-pay-later firm expected to start trading next week.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to KnowGOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
7 Mistakes to Avoid When You First Start InvestingInvesting brings the opportunity to build wealth, but there are plenty of mistakes that can be made. Here are seven common ones and how they can be avoided.
