Affirm Holdings (NASDAQ:AFRM) shares have lost more than 15% in the extended trading hours yesterday on a weak outlook, despite the company reporting better-than-expected Fiscal Q1 top-line results. The stock is down more than 80% year-to-date.
Revenues rose 34% to $362 million, exceeding analysts’ expectations of $360 million. Affirm informed investors that revenue grew 46%, excluding one of its largest partners, Peloton Interactive (NASDAQ:PTON). Notably, Peloton has been facing lower demand for exercise bikes as people return to normal lives post-pandemic.
In addition, the company reported a net loss of $0.86 per share, which compared favorably with a loss of $1.13 in the prior-year quarter. However, the loss was greater than Wall Street’s expectation of a loss of $0.84.
On other financial fronts, the company registered a 62% year-over-year jump in gross merchandise volume (GMV) to $4.4 billion. Also, active consumers grew 69% to 14.7 million.
Owing to Peloton headwinds, Affirm has reduced expectations for the Fiscal Year 2023. It forecasts revenue to be between $1.60 billion and $1.68 billion, compared with $1.63 billion and $1.73 billion previously expected. For the fiscal second quarter, Affirm expects revenue to be in the range of $400-$420 million.
Is Affirm a Buy or Sell Stock?
AFRM stock has a Moderate Buy consensus rating based on nine Buys, three Holds, and two Sells. The average Affirm stock price target of $32 implies 104.6% upside potential.
