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Affirm Holdings (AFRM) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates
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In its upcoming report, Affirm Holdings (AFRM - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.35 per share, reflecting an increase of 52.2% compared to the same period last year. Revenues are forecasted to be $1.22 billion, representing a year-over-year increase of 30.3%.
The current level reflects an upward revision of 0.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Affirm Holdings metrics that Wall Street analysts commonly model and monitor.
Analysts expect 'Revenue- Merchant network' to come in at $318.34 million. The estimate indicates a change of +26.8% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Card network' should come in at $87.63 million. The estimate suggests a change of +26.4% year over year.
The combined assessment of analysts suggests that 'Revenue- Interest income' will likely reach $603.29 million. The estimate indicates a change of +32.9% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Servicing income' of $55.07 million. The estimate indicates a change of +38.7% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Gain on sales of loans' at $151.18 million. The estimate suggests a change of +27% year over year.
The consensus estimate for 'Gross Merchandise Volume (GMV)' stands at $14053.61 billion. Compared to the current estimate, the company reported $10800.00 billion in the same quarter of the previous year.
Analysts predict that the 'Total Transactions' will reach 52 . The estimate is in contrast to the year-ago figure of 41 .
Analysts forecast 'Active Consumers' to reach 29 . The estimate compares to the year-ago value of 24 .
Based on the collective assessment of analysts, 'Transactions per Active Consumer' should arrive at 7 . The estimate compares to the year-ago value of 6 .
Over the past month, shares of Affirm Holdings have returned +3.8% versus the Zacks S&P 500 composite's -0.9% change. Currently, AFRM carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Affirm Holdings (AFRM) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates
In its upcoming report, Affirm Holdings (AFRM - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.35 per share, reflecting an increase of 52.2% compared to the same period last year. Revenues are forecasted to be $1.22 billion, representing a year-over-year increase of 30.3%.
The current level reflects an upward revision of 0.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Affirm Holdings metrics that Wall Street analysts commonly model and monitor.
Analysts expect 'Revenue- Merchant network' to come in at $318.34 million. The estimate indicates a change of +26.8% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Card network' should come in at $87.63 million. The estimate suggests a change of +26.4% year over year.
The combined assessment of analysts suggests that 'Revenue- Interest income' will likely reach $603.29 million. The estimate indicates a change of +32.9% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Servicing income' of $55.07 million. The estimate indicates a change of +38.7% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Gain on sales of loans' at $151.18 million. The estimate suggests a change of +27% year over year.
The consensus estimate for 'Gross Merchandise Volume (GMV)' stands at $14053.61 billion. Compared to the current estimate, the company reported $10800.00 billion in the same quarter of the previous year.
Analysts predict that the 'Total Transactions' will reach 52 . The estimate is in contrast to the year-ago figure of 41 .
Analysts forecast 'Active Consumers' to reach 29 . The estimate compares to the year-ago value of 24 .
Based on the collective assessment of analysts, 'Transactions per Active Consumer' should arrive at 7 . The estimate compares to the year-ago value of 6 .
View all Key Company Metrics for Affirm Holdings here>>>Over the past month, shares of Affirm Holdings have returned +3.8% versus the Zacks S&P 500 composite's -0.9% change. Currently, AFRM carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .