Buy now, pay later company Affirm (NASDAQ: AFRM) will be reporting earnings this Thursday after market close. Here’s what to expect.
Affirm beat analysts’ revenue expectations last quarter, reporting revenues of $1.12 billion, up 29.6% year on year. It was a mixed quarter for the company, with but a significant miss of analysts’ EPS estimates.
Is Affirm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Affirm’s revenue to grow 27.2% year on year, slowing from the 35.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Affirm rarely misses Wall Street’s revenue estimates.
Looking at Affirm’s peers in the personal loan segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FirstCash delivered year-on-year revenue growth of 25.7%, beating analysts’ expectations by 4.8%, and LendingClub reported revenues up 15.9%, topping estimates by 1.2%. FirstCash traded up 3.1% following the results while LendingClub was down 1.8%.
Read our full analysis of FirstCash’s results here and LendingClub’s results here.
There has been positive sentiment among investors in the personal loan segment, with share prices up 8% on average over the last month. Affirm is up 38.6% during the same time and is heading into earnings with an average analyst price target of $79.08 (compared to the current share price of $67.13).
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