Affirm Holdings Q4 Earnings Report: What Investors Need to Know

Affirm Holdings Inc. (AFRM) shares are trading higher ahead of its Q4 earnings report, scheduled for release after the market close. Wall Street anticipates EPS of approximately 30 cents on revenues around $838 million. Several positive catalysts have bolstered investor confidence, including an expanded partnership with Google and price target revisions from analysts. Investors will be closely watching new user growth and transaction volumes to gauge the company's performance.

Affirm Holdings Inc. (AFRM) shares are trading higher ahead of its Q4 earnings report, scheduled for release after the market close. Wall Street anticipates EPS of approximately $0.30 per share on revenues around $838 million. Several positive catalysts have bolstered investor confidence, including an expanded partnership with Google and price target revisions from analysts. Investors will be closely watching new user growth and transaction volumes to gauge the company's performance.

Analysts on Wall Street project that Affirm Holdings will announce quarterly earnings of $0.11 per share, representing an increase of 178.6% year over year [1]. Revenues are projected to reach $839.88 million, increasing 27.4% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 22.6% to its current level, indicating a significant reassessment by covering analysts [1].

Key metrics forecasted by Wall Street analysts include:
- 'Revenue- Merchant network' is expected to reach $234.97 million, indicating a year-over-year change of +29.8% [1].
- 'Revenue- Card network' is projected to come in at $59.11 million, representing a change of +37.5% from the prior-year quarter [1].
- 'Revenue- Interest income' is forecasted to reach $416.13 million, suggesting a change of +23.3% year over year [1].
- 'Revenue- Servicing income' is expected to reach $33.77 million, indicating a change of +22.4% from the prior-year quarter [1].
- 'Revenue- Gain on sales of loans' is projected to be $90.96 million, pointing to a change of +30% from the year-ago quarter [1].
- The consensus estimate for 'Gross Merchandise Volume (GMV)' stands at $9577.07 billion, compared to the previous year's $7241.00 billion [1].
- 'Transactions per Active Consumer' is expected to reach 6, compared to the year-ago value of 5 [1].
- 'Active Consumers' are forecasted to reach 22, compared to the year-ago value of 19 [1].

Over the past month, shares of Affirm Holdings have returned +18.5% versus the Zacks S&P 500 composite's +2.7% change. Currently, AFRM carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future [1].

Investors will be closely watching these key metrics and the overall earnings report to assess the company's performance and growth prospects. The expanded partnership with Google and positive analyst revisions indicate a bullish outlook for Affirm Holdings, but the market's reaction will depend on the actual earnings results.

References:
[1] https://www.nasdaq.com/articles/countdown-affirm-holdings-afrm-q4-earnings-look-estimates-beyond-revenue-and-eps