Buy now, pay later company Affirm (NASDAQ:AFRM) will be reporting results this Thursday afternoon. Here’s what to look for.
Affirm beat analysts’ revenue expectations last quarter, reporting revenues of $1.04 billion, up 32.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Affirm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Affirm’s revenue to grow 26.4% year on year, slowing from the 33% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Affirm rarely misses Wall Street’s revenue estimates.
Looking at Affirm’s peers in the personal loan segment, some have already reported their Q2 results, giving us a hint as to what we can expect. SoFi delivered year-on-year revenue growth of 40.5%, beating analysts’ expectations by 7.1%, and Sezzle reported revenues up 51.7%, topping estimates by 9.8%. SoFi traded down 1.6% following the results while Sezzle was also down 33.9%.
Read our full analysis of SoFi’s results here and Sezzle’s results here.
There has been positive sentiment among investors in the personal loan segment, with share prices up 4.3% on average over the last month. Affirm is up 6.5% during the same time and is heading into earnings with an average analyst price target of $91.64 (compared to the current share price of $77.83).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.