Shares of Affirm (AFRM) surged in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at -$0.14, which smashed analysts’ consensus estimate of -$0.48 per share. This is interesting because we recently mentioned how some bulls think that profitability may actually be closer than the consensus expects. Today’s result definitely lends credibility to that argument.
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In addition, sales increased by 47.8% year-over-year, with revenue hitting $659.18. This beat analysts’ expectations by $53.8 million.
Looking forward, management now expects revenue for Q1 2025 to be in the range of $640 to $670 million. For reference, analysts were expecting $624.95 million in revenue.
Is AFRM Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AFRM stock based on five Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 65% rally in its share price over the past year, the average AFRM price target of $41.50 per share implies 31.41% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
