Affirm Holdings (AFRM) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 28, might help the stock move higher if these key numbers are better than expe ...

In the latest trading session, Affirm Holdings (AFRM) closed at $66.75, marking a -3.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%. Coming into today, shares of the operator of digital commerce platform had gained 11.02% in the past month. In that same time, the Computer and Technology sector gained 7.37%, while the S&P 500 gained 5.35%. Market participants will b ...

Company Performance - Affirm Holdings (AFRM) experienced a daily increase of +1.98%, closing at $69.07, outperforming the S&P 500's gain of 0.61% [1] - Prior to the latest trading session, shares had risen by 11.03%, surpassing the Computer and Technology sector's increase of 5.6% and the S&P 500's increase of 3.85% [1] Upcoming Earnings - The upcoming earnings disclosure is expected to show an EPS of $0.09, representing a significant increase of 164.29% compared to the same quarter last year [2] - Revenue is projected to reach $833.89 million, reflecting a 26.5% increase from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $0.03 per share and revenue of $3.18 billion, indicating a year-over-year earnings increase of +101.8% and no change in revenue [3] Analyst Estimates - Recent changes in analyst estimates for Affirm Holdings are crucial for investors, as positive revisions indicate optimism regarding the company's business and profitability [3][4] - The Zacks Rank system, which incorporates these estimate changes, currently assigns Affirm Holdings a rank of 3 (Hold) [5] Valuation Metrics - Affirm Holdings has a Forward P/E ratio of 96.3, significantly higher than the industry average Forward P/E of 28.96 [6] - The company also has a PEG ratio of 2.46, compared to the Internet - Software industry's average PEG ratio of 2.22 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 62, placing it in the top 26% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Affirm Holdings has seen significant interest in its stock, with a recent performance of +16.1% over the past month, outperforming the S&P 500 composite's +3.9% and the Zacks Internet - Software industry's +2.7% [2] Earnings Estimates - For the current quarter, Affirm Holdings is expected to report earnings of $0.09 per share, reflecting a year-over-year increase of +164.3% [5] - The consensus earnings estimate for the current fiscal year stands at $0.03, indicating a year-over-year change of +101.8% [5] - For the next fiscal year, the consensus earnings estimate is $0.70, showing no change from the previous year [6] - The Zacks Rank for Affirm Holdings is 3 (Hold), based on recent changes in earnings estimates and other related factors [7] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $833.89 million, representing a year-over-year increase of +26.5% [11] - For the current fiscal year, the sales estimate is $3.18 billion, indicating a +37% change, while the next fiscal year's estimate is $3.91 billion, reflecting a +23% change [11] Last Reported Results - In the last reported quarter, Affirm Holdings generated revenues of $783.14 million, a year-over-year increase of +35.9% [12] - The EPS for the same period was $0.01, compared to -$0.43 a year ago, with an EPS surprise of +111.11% [12] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times [13] Valuation - Affirm Holdings is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [15][16]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Affirm Holdings due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Affirm Holdings is expected to report a quarterly loss of $0.08 per share, reflecting an 81.4% improvement year-over-year, with revenues projected at $783.11 million, a 35.9% increase from the previous year [3]. - The earnings report is scheduled for May 8, 2025, and could lead to stock price increases if results exceed expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 4.88% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Zacks Earnings ESP model suggests that recent estimate revisions may provide insights into business conditions leading up to the earnings release [5][6]. Earnings Surprise Potential - Affirm Holdings has a positive Earnings ESP of +63.27%, indicating a strong likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 1 [11]. - The company has a history of exceeding consensus EPS estimates, having done so in the last four quarters, including a significant surprise of +215% in the last reported quarter [12][13]. Conclusion - Affirm Holdings is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings results when making investment decisions [16].