Despite a modest 1% increase in its share price, closing recently at $17.10, Affirm Holdings Inc (NASDAQ:AFRM) has lagged behind the gains of major indices. The S&P 500, Dow, and Nasdaq reported increases of 1.2%, 1.58%, and 1.16% respectively. This comes after a significant drop of 20.4% in AFRM's stock over the past month, surpassing losses in both the Business Services sector (5.43%) and the S&P 500 (3.58%).
Investors are now eyeing the company's upcoming earnings report, scheduled for November 8, 2023. The report is expected to show an earnings per share (EPS) of $0.08, marking a year-over-year (YoY) growth of 109.3%. Additionally, the company's revenue is projected to reach $444.94 million for the quarter, a rise of 23.04% from the same period last year.
For the full fiscal year, Affirm's earnings are forecasted at $0.28 per share and revenue at $1.95 billion, indicating YoY changes of +108.38% and +22.77%, respectively.
InvestingPro Insights
As we delve deeper into Affirm Holdings Inc's performance, InvestingPro data and tips provide a more nuanced perspective. Firstly, it's noteworthy that the stock has taken a significant hit over the past month, aligning with the 20.4% drop mentioned earlier in the article. Secondly, InvestingPro data highlights a recent slowdown in the company's revenue growth, which could potentially impact the forecasted earnings for the upcoming quarter.
Moreover, Affirm operates with a relatively low return on assets and yields a low return on invested capital, as per InvestingPro's analysis. This could be indicative of the company's efficiency in using its assets to generate profit and the effectiveness of its investment strategies.
On a positive note, the company's liquid assets exceed its short-term obligations, suggesting a favorable liquidity position. However, it's important to note that Affirm has not been profitable over the last twelve months, and analysts do not anticipate it will be profitable this year. This is something investors should consider when reviewing the upcoming earnings report.
For a more comprehensive understanding of Affirm's financial performance and market position, consider exploring the additional 10 InvestingPro Tips available in the InvestingPro product.
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