Affirm Holdings Inc (NASDAQ:AFRM) stock remains in focus after the company delivered stronger-than-expected fourth-quarter results and issued an above-consensus fiscal 2027 outlook, prompting Needham to raise its price forecast.
Needham Highlights Strong Growth And Credit Performance
Needham analyst Kyle Peterson maintained a Buy rating on Affirm and raised his price forecast to $100 from $90, citing strong execution across growth, profitability, credit and funding.
Fourth-quarter gross merchandise volume reached $14.1 billion, up 35.6% year over year and above Needham’s $13.4 billion estimate.
Revenue increased 33% to $1.17 billion, topping Needham’s $1.11 billion estimate and the $1.16 billion consensus. Revenue less transaction costs reached $589.3 million, above Needham’s $542.5 million estimate and the $550.3 million consensus.
GAAP EPS came in at $4.62, well above Needham’s $0.28 estimate and the $0.35 consensus, helped by stronger core trends and a one-time tax benefit from a deferred tax asset reversal.
Peterson also highlighted strong credit performance, which he attributed to a resilient consumer base and Affirm’s transaction-based underwriting.
FY27 Outlook Comes In Above Consensus
For the first quarter, Affirm expects GMV of $13.7 billion to $14 billion and revenue of $1.19 billion to $1.22 billion, compared with the $1.16 billion consensus.
For fiscal 2027, Affirm expects GMV above $64 billion. Peterson estimates revenue of about $5.43 billion, ahead of the $5.29 billion consensus.
Affirm also expects adjusted operating margin above 30.5% and GAAP operating margin above 14.5%.
Peterson remains constructive on Affirm’s in-store expansion and international opportunity. He also highlighted the expanded Shopify Inc (NASDAQ:SHOP) partnership to launch Shop Pay Installments in Australia as another potential growth driver.
AFRM Stock Price Activity: Affirm Holdings shares were up 4.53% at $81.00 on Friday, according to Benzinga Pro data.
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