consumer finance company Affirm Holdings (AFRM) reported a smaller-than-expected loss in the December quarter, while sales and other financial metrics beat Wall Street targets. The company’s outlook for AFRM stock was better than expected, but it may not have been enough after a big rally.
The San Francisco-based company announced its second-quarter results after the market closed. On the stock market today, AFRM stock fell over 13% to 42.74.
In Affirm’s earnings report, the company reported a loss of 54 cents per share for the three months ended Dec. 31. In the same period last year, the company lost $1.10 per share. Analysts surveyed by FactSet had expected a loss of 72 cents per share.
Affirm said sales rose 48% to $591 million, compared to expectations of $521 million. After trading expenses, he earned $242 million, an increase of 68% versus his expected $198.1 million.
According to the company, total circulation increased 32% to $7.5 billion, compared to the expected $6.95 billion. The new Affirm Card brought him $400 million in GMV.
Affirming stock price: GMV guidance exceeds views
For the current March quarter, Affirm said it expects sales to be $540 million at the midpoint of its guidance, compared to expectations of $488 million. GMV is projected at $5.9 billion, higher than expectations of $5.78 billion.
AFRM stock has gained 193% over the past 52 weeks.
Affirm is one of the largest providers of buy now, pay later installment services. With the BNPL option, consumers pay for their purchases in monthly installments with low or no interest. Affirm is expanding into other financial services.
The initial public offering of AFRM stock in January 2021 raised $1.2 billion. Affirm derives most of its revenue from transaction fees paid by online retailers. Additionally, Affirm derives approximately one-third of its revenue from interest income paid by consumers.
According to Affirm’s financial report, the stock received a relative strength rating of 99 out of 99, the highest possible score. IBD inventory diagnosis.
Follow Reinhard Krauss on X, formerly known as Twitter. @reinhardtk_tech Get the latest information on artificial intelligence, cybersecurity, and cloud computing.
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