Wall Street analysts expect Affirm Holdings (AFRM) to post quarterly loss of $0.08 per share in its upcoming report, which indicates a year-over-year increase of 81.4%. Revenues are expected to be $783.11 million, up 35.9% from the year-ago quarter.
Over the last 30 days, there has been an upward revision of 4.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Affirm Holdings metrics that are commonly monitored and projected by Wall Street analysts.
It is projected by analysts that the 'Revenue- Merchant network' will reach $199.48 million. The estimate indicates a change of +25.2% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Card network' should arrive at $46.40 million. The estimate indicates a year-over-year change of +30.1%.
Analysts forecast 'Revenue- Interest income' to reach $414.44 million. The estimate indicates a year-over-year change of +31.3%.
Analysts predict that the 'Revenue- Servicing income' will reach $31.25 million. The estimate suggests a change of +23.5% year over year.
Analysts' assessment points toward 'Revenue- Gain on sales of loans' reaching $81.19 million. The estimate suggests a change of +102.1% year over year.
According to the collective judgment of analysts, 'Gross Merchandise Volume (GMV)' should come in at $8,129.51 billion. The estimate is in contrast to the year-ago figure of $6,294 billion.
The average prediction of analysts places 'Transactions per Active Consumer' at 5. Compared to the current estimate, the company reported 5 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Active Consumers' of 21. Compared to the present estimate, the company reported 18 in the same quarter last year.
View all Key Company Metrics for Affirm Holdings here>>>
Over the past month, Affirm Holdings shares have recorded returns of +46.4% versus the Zacks S&P 500 composite's +0.4% change. Based on its Zacks Rank #1 (Strong Buy), AFRM will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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