Affirm Holdings Posts Q2 Beat On All Key Indicators - Is Firing On All Cylinders, Analysts Say

Shares of Affirm Holdings Inc AFRM spiked in early trading on Friday after the company reported upbeat fiscal second-quarter results.

The company released its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

JMP Securities On Affirm Holdings

Analyst David Scharf reiterated a Market Outperform rating, while raising the price target from $78 to $85.

Affirm Holdings reported its fiscal second-quarter revenues and earnings significantly ahead of expectations, Scharf said in a note. All the important KPIs were above estimates, he added.

The company reached positive GAAP operating income five months earlier than its "accelerated target that it unveiled just three months ago," the analyst stated. Affirm Holdings appears well positioned to "capitalize on the continued adoption of BNPL (buy now pay later) solutions for everyday purchases and benefits from a more robust loan platform relative to competitors," he further wrote.

RBC Capital Markets On Affirm Holdings

Analyst Daniel Perlin reaffirmed a Sector Perform rating and price target of $67.

Affirm Holdings delivered "strong beats across the board," with GMV around 6% higher than Street expectations, Perlin said. Gain on the sale of loans came in "meaningfully higher," at around $58 million above RBC's estimate, he added.

The company reiterated that it expects to achieve GAAP operating income profitability in the fiscal fourth quarter, the analyst stated. Management guided to full-year GMV between $34.74 billion and $35.34 billion and revenue between $3.13 billion and $3.19 billion, Perlin said.

Check out other analyst stock ratings.

JPMorgan On Affirm Holdings

Analyst Reginald Smith maintained an Overweight rating and price target of $74.

Affirm Holdings recorded GMV (gross merchandise value) and revenue growth of 35% and 47% year-on-year, respectively, both exceeding expectations, Smith said. Management's fiscal third-quarter guidance for GMV and revenue came in-line with consensus, he added.

The company raised its GMV and revenue guidance for the full year by more than the quarterly beat, the analyst stated. "Affirm is firing on all cylinders, delivering premium growth, improving profitability and consistent credit performance."

Needham On Affirm Holdings

Analyst Kyle Peterson reaffirmed a Hold rating on the stock.

Affirm Holdings reported GMV of $10.1 billion, beating consensus of $9.6 billion, and revenue of $866.4 million, surpassing estimate of $807.2 million, Patterson said. The beat was driven mainly by "stronger network revenue and higher gain on sale income."

Both credit costs and SG&A remained "relatively lean," the analyst stated. Affirm Holdings provided strong guidance for the fiscal third and fourth quarters, reflecting "good execution and ongoing improvement in profitability," Peterson further wrote.

AFRM Price Action: Shares of Affirm Holdings had risen by 19.56% to $73.83 at the time of publication on Friday midday.

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