According to Zacks Consensus Estimate, Affirm Holdings reported a quarterly loss of $1.10 per share, which was worse than the estimated loss of $1.01. This is an increase from the loss of $0.57 per share in the same period last year. The figures provided have been adjusted for exceptional items.
This earnings report disappointed, missing the expected results by 8.91%. A quarter ago, the company was estimated to post a loss of $0.82 per share but reported a loss of $0.86 per share, missing the estimate by 4.88%. In the last four quarters, Affirm Holdings has only once exceeded the consensus EPS (Earnings Per Share) estimate.
The company, which is part of the Zacks Business – Services industry, reported revenue of $399.56 million for the quarter ending December 2022. This was below the Zacks Consensus Estimate by 4.99% and higher than the revenue of $361.01 million from the same period last year. However, the company has exceeded the consensus revenue estimate three times in the past four quarters.
The immediate impact of this earnings report on the stock price and future earnings expectations will largely depend on the comments made by the management during the earnings call.
What is the future of Affirm Holdings in store?
Despite the company’s successful performance this year, investors are curious about what the future holds for the stock. The company’s earnings outlook is a crucial factor that can help predict the stock’s future. This includes the current earnings projections for the upcoming quarter(s) and how these projections have changed recently.
Studies have shown a strong correlation between short-term stock movements and the trends in earnings estimate revisions. Investors can monitor these revisions independently or use a well-established rating tool like the Zacks Rank, which has a strong history of utilising earnings estimate revisions effectively.
Before this earnings release, the trend in estimate revisions for Affirm Holdings was mixed, resulting in a Zacks Rank of #3 (Hold) for the stock. This means that the shares are predicted to perform similarly to the market shortly.
It will be intriguing to observe how the projections for the coming quarters and the current fiscal year evolve in the future. The current consensus estimate for the earnings per share is -$0.80 on $416.18 million in revenue for the upcoming quarter and -$3.50 on $1.64 billion in revenue for the current fiscal year.
Investors should also be aware that the industry’s outlook can significantly impact the stock’s performance. The Zacks Industry Rank for Business – Services is currently in the top 37% of the 250+ Zacks industries, and research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.
