Business & Finance
Affirm stock surges after beating fourth-quarter revenue expectations
The buy now, pay later provider reported strong financial results despite its CEO warning that inflation and elevated gas prices are pressuring consumers.
The short version
- Affirm Holdings shares rose 7% following a strong fiscal fourth-quarter earnings report that exceeded Wall Street estimates.
- CEO Max Levchin noted that while consumer demand remains strong as shoppers use financing to manage their budgets, sustained inflationary pressures remain a long-term concern.
- The Federal Reserve will review key economic indicators, including July's 3.7% annual inflation rate, at its upcoming policy meeting in September.
Key facts
- Affirm reported fiscal fourth-quarter revenue of $1.17 billion, exceeding the $1.11 billion LSEG estimate.[CNBC]
- The company forecasts fiscal first-quarter revenue to be between $1.19 billion and $1.22 billion, beating the Wall Street expectation of $1.16 billion.[CNBC]
- Affirm's gross merchandise volume reached $14.1 billion, ahead of the $13.39 billion StreetAccount expectation.[CNBC]
- CEO Max Levchin stated that elevated gas prices and broader inflation are pushing more consumers to use the company's services to help manage their budgets.[CNBC]
- The national average price for gasoline stood at $4.09 per gallon, which is down from a May peak of over $4.50 but remains significantly elevated compared to earlier in the year.[CNBC]
What remains uncertain
- It remains uncertain how long-term inflationary pressures and gas prices will affect consumer health and Affirm's transaction volumes over the coming fiscal year.[CNBC]