Shares of Affirm Holdings surged Friday after the “buy now, pay later” company raised its revenue forecast for fiscal 2022.
Affirm (ticker: AFRM) said it expects revenue for the fiscal year of $1.33 billion to $1.34 billion, higher than its prior estimates of $1.31 billion. Analysts surveyed by FactSet expect revenue of $1.33 billion.
The company said it expects gross merchandise value of $15 billion to $15.14 billion in fiscal 2022, higher than previous expectations of about $14.8 billion.
The stock soared 35% to $24.35 in premarket trading Friday. It closed with a gain of more than 23% on Thursday. Affirm shares have fallen 82% year to date.
For the fiscal fourth quarter, Affirm said it expects revenue of $345 million to $355 million; analysts were looking for $352 million.
Affirm said revenue in the fiscal third quarter rose 54% from a year earlier to $354.8 million, and higher than estimates of $344.3 million. The company reported a loss of 19 cents a share, narrower than the year-earlier loss of $1.23 a share, and narrower than Wall Street expectations for a loss of 46 cents.
Gross merchandise volume in the third quarter jumped 73% to $3.9 billion,
“Our strong performance demonstrates our ability to drive growth with attractive unit economics, despite volatile market conditions,” said Chief Financial Officer Michael Linford in a statement.
Affirm also announced a multi-year extension of its partnership with Shopify in the US
Ahead of the earnings, JP Morgan initiated coverage on the stock with a Neutral rating and a price target of $30.
“Affirm is a commerce disruptor, driving the convergence of retail, technology and e-commerce through its consumer marketplace app and innovative financing products,” JP Morgan analysts wrote in a research note.
Write to Joe Woelfel at [email protected]
Credit: www.marketwatch.com /