Affirm's Latest Financial Results Show Impressive Gains, Exceed Market Predictions
Portfolio Pulse from Anusuya Lahiri
Affirm Holdings Inc (NASDAQ:AFRM) reported fiscal third-quarter financial results, showing a 51% year-over-year revenue increase to $576 million, surpassing the consensus estimate of $549.42 million. The company also reported a smaller-than-expected EPS loss of $(0.43) compared to analyst estimates of $(0.67). Gross merchandise volume grew 36% to $6.3 billion, and the company now has over 1 million active Affirm card consumers. Affirm's outlook for the fiscal fourth quarter is optimistic, with expected revenue between $585.00 million and $605.00 million. Despite these positive results, AFRM shares were down 8.6% at $31.88. Walmart Inc (NYSE:WMT) is mentioned as backing a fintech startup, One, a direct competitor to Affirm.
May 08, 2024 | 3:16 pm
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NEUTRAL IMPACT
Walmart backs fintech startup One, a direct competitor to Affirm in the buy now, pay later space, indicating Walmart's interest in expanding its financial services offerings.
Walmart's backing of a fintech startup competing with Affirm suggests an interest in the BNPL sector but does not directly impact Walmart's short-term stock performance. The move could be seen as part of a broader strategy to enhance Walmart's financial services.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Affirm reported higher-than-expected Q3 revenue and a smaller EPS loss, with significant growth in gross merchandise volume and active card consumers. Despite this, shares dropped 8.6%.
Despite Affirm's positive earnings report and optimistic outlook, the immediate stock price reaction was negative, likely due to market volatility or profit-taking. The long-term perspective remains positive, but short-term price movement has been adversely affected.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100