Affirm Beats Expectations, Multiple Analysts Raise Price Targets

Affirm Holdings Inc reported better-than-expected fourth-quarter financial results on Thursday and issued stronger-than-expected first-quarter revenue guidance.

Affirm reported quarterly earnings per share of $4.62. Quarterly revenue came in at $1.17 billion, beating the analyst consensus estimate of $1.11 billion and up from $876.42 million in the same period last year. Gross merchandise volume reached $11.6 billion, up 35% year-over-year.

"We delivered another strong quarter, especially against a backdrop of global economic uncertainty," said CEO Max Levchin.

Affirm expects first-quarter revenue in the range of $1.19 billion to $1.22 billion, versus the analyst consensus estimate of $1.16 billion.

Affirm shares rose 11.2% in pre-market trading to $86.20.

Following the earnings release, several analysts adjusted their price targets for Affirm.

Needham analyst Kyle Peterson maintained a Buy rating on the stock and raised the price target from $90 to $100.

BofA Securities analyst Matthew O'Neill maintained a Buy rating and raised the price target from $93 to $104.

Morgan Stanley analyst James Faucette maintained an Equal-Weight rating and raised the price target from $80 to $82.

BMO Capital analyst Rufus Hone maintained an Outperform rating and raised the price target from $86 to $101.

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