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Affirm Holdings (AFRM) Reports Q2 Earnings: What Key Metrics Have to Say

For the quarter ended December 2022, Affirm Holdings (AFRM) reported revenue of $399.56 million, up 10.7% over the same period last year. EPS came in at -$1.10, compared to -$0.57 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $420.54 million, representing a surprise of -4.99%. The company delivered an EPS surprise of -8.91%, with the consensus EPS estimate being -$1.01.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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Here is how Affirm Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Gain (loss) on sales of loans: $59.61 million versus $70.33 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.

  • Servicing income: $21.49 million compared to the $23.93 million average estimate based on six analysts. The reported number represents a change of +89.9% year over year.

  • Interest income: $155.32 million versus the six-analyst average estimate of $152.68 million. The reported number represents a year-over-year change of +12.3%.

  • Virtual card network revenue: $29.12 million versus $32.82 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.6% change.

  • Merchant network revenue: $134.02 million versus the five-analyst average estimate of $133.08 million. The reported number represents a year-over-year change of +5.5%.

View all Key Company Metrics for Affirm Holdings here>>>

Shares of Affirm Holdings have returned +71.1% over the past month versus the Zacks S&P 500 composite's +7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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