Affirm Holdings, Inc. ($AFRM) Earnings (Q4 FY22)

 Affirm Holdings, Inc. ($AFRM) Earnings and Opinion:


Affirm Holdings is a company in the Technology sector and operates in the Software-Infrastructure industry. The company operates as a platform for digital and mobile-first commerce in the United States and Canada. Affirm Holdings was founded in 2012 and is currently headquartered in San Francisco, California. The company made its debut on the stock market in 2021.

Affirm Holdings Earnings Results:

  • GMV of $4.4B beating expectations of $4.07B
  • Revenues of $364M beating expectations of $354M
  • Operating Income of -$29M beating expectations of -$42M
  • EPS of -$0.65 missing expectations of -$0.58
  • Guidance missed for both Q1 FY23 and FY23, except for Operating Income
Opinion:
Affirm is currently moving lower, after reporting earnings after the closing bell today. The company had a mixed earnings report with claims to consumer demand slowing as a cause. They said the slowdown has been well telegraphed in the earnings. Lending is becoming a shady area, especially with interest rates rising currently. The GMV and Revenues looked solid, but profitability seems to be a bit of an issue currently. Guidance was a little off beat, which is also dragging the stock down a bit. Consumer lending stocks have all been hammered, ever since the start of interest rate hikes. As far as valuation goes, the P/S ratio is a little high at 10.60 currently. The revenue growth shows a solid decline, but is still at steady rates. Current ratio is out the roof at 41.31 and debt currently outweighs cash. In my opinion, consumer lending is being shunned right now by investors. It is best to get in right now, if you have interest in the future of these business models. I am not a huge fan of Affirm, I think some of the competitors are a little better. I am big on the consumer lending industry, so I would say this is a solid stock to have in a couple years.


*Information from Yahoo Finance, CMLVIZ, Consensus Gurus, Motley Fool

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