Buy now, pay later company Affirm (NASDAQ: AFRM) will be reporting earnings this Thursday afternoon. Here’s what to expect.
Affirm beat analysts’ revenue expectations last quarter, reporting revenues of $1.17 billion, up 33% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA 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 30% year on year, slowing from the 33.6% 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 Q3 results, giving us a hint as to what we can expect. SoFi delivered year-on-year revenue growth of 44.4%, beating analysts’ expectations by 8.5%, and FirstCash reported revenues up 17.7%, topping estimates by 2.4%. SoFi traded up 18.5% following the results while FirstCash was down 20.3%.
Read our full analysis of SoFi’s results here and FirstCash’s results here.
There has been positive sentiment among investors in the personal loan segment, with share prices up 4.2% on average over the last month. Affirm is down 4.2% during the same time and is heading into earnings with an average analyst price target of $97.87 (compared to the current share price of $71.58).
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