Shares of Affirm Holdings (NASDAQ:AFRM) lost over 18% in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2023. Adjusted earnings per share came in at -$1.10, which missed analysts’ consensus estimate of -$0.94 per share.
Sales increased by 10.8% year-over-year, with revenue hitting $400 million. This missed analysts’ expectations of $416.33 million. Affirm also reported a gross merchandise volume of $5.66 billion. That’s up from $4.46 billion a year ago. As a result of the poor overall performance, reports noted that massive layoffs are coming. Multiple reports noted that Affirm was set to fire 19% of its total workforce.
Looking forward, management now expects revenue for Q3 2023 to be in the range of $360 million to $380 million. For reference, analysts were expecting $418.01 million in revenue. As for the full year 2023, management expects revenue of between $1.475 billion to $1.55 billion, against a consensus total of $1.64 billion.
Overall, Wall Street has a consensus price target of $19.91 on Affirm Holdings, implying 24.09% upside potential, as indicated by the graphic above.
