Key Points
- Shares of Affirm Holdings dropped by 13% on Friday, following the company’s disappointing revenue outlook for the current quarter.
- Affirm is anticipating fourth-quarter revenue between $815 million and $845 million, which is below the consensus estimate of $843.9 million.
- The stock has lost nearly 25% of its value this year.
Affirm Holdings (AFRM) experienced a 13% decline in its stock price last Friday after issuing a less-than-hopeful quarterly revenue forecast.
The company expects revenue in the fourth quarter to range from $815 million to $845 million, which is under the alpha consensus estimate of $843.9 million.
In the previous third quarter, revenues were reported at $783.1 million. Although a loss of 2 cents per share was projected, Affirm managed to report earnings of one penny per share and surpassed expectations in total commodity volume, which rose 36% year-over-year to over $8.6 billion.
During an interview on CNBC regarding consumer trends, CEO Max Lefin noted, “Things are looking pretty good. Sure, there’s some anxiety about the economy, but it’s interesting—people are still shopping and managing to pay their bills on time.”
The company’s stock remains down nearly 25% for the year.
