Affirm Holdings Inc.’s fiscal second-quarter 2025 earnings beat consensus estimates by a huge margin. AFRM has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans, and virtual card revenues. Growing numbers of active merchants, improving gross merchandise value, and average balance of loans are driving revenues and interest income.
Key partnerships, including those with Apple Pay and Hotels.com, play a vital role in its expansion. AFRM has officially expanded to the United Kingdom through a partnership with Alternative Airlines. Affirm Holdings has an expected revenue and earnings growth rate of 36.9% and 89.2%, respectively, for the current year (ending June 2025).
The Zacks Consensus Estimate for the current-year earnings has improved more than 100% in the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 23.8% from the last closing price of $64.15. AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally.
APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps. The introduction of its AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth. AppLovin reported fourth-quarter adjusted EPS of $1.73, beating the Zacks Consensus Estimate of $1.34.
The company posted quarterly revenues of $1.37 billion, surpassing the Zacks Consensus Estimate by 8.6%. AppLovin has an expected revenue and earnings growth rate of 20.4% and 51.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% in the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 56.4% from the last closing price of $325.74.
Affirm Holdings exceeds earnings expectations
Robinhood Markets operates a financial services platform in the United States that allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies.
Given higher retail participation in markets, HOOD’s trading revenues are expected to grow. Expansion efforts, including pending buyouts of TradePMR and Bitstamp, alongside product expansion to become a leader in the active trader market, will bolster its financials. Robinhood Markets has an expected revenue and earnings growth rate of 25.3% and 38.5%, respectively, for the current year.
The Zacks Consensus Estimate for current-year earnings has improved 28% over the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 37.1% from the last closing price of $50.1.
Carvana’s acquisition of ADESA’s U.S. operations has strengthened its logistics network, auction capabilities and reconditioning processes. By utilizing ADESA’s infrastructure, CVNA can scale refurbishment operations, improving both the quality and volume of vehicles prepared for resale.
CVNA anticipates sequential year-over-year growth in retail unit sales for first-quarter 2025. Despite being the nation’s second-largest used car retailer, CVNA holds only a 1% share of the highly fragmented U.S. automotive retail market, signaling substantial expansion potential as online car buying gains traction. Carvana has an expected revenue and earnings growth rate of 22.1% and 97.5%, respectively, for the current year.
The Zacks Consensus Estimate for current-year earnings has improved 18.1% over the last 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 29% from the last closing price of $233.1.
Sprouts Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label offerings, and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position, and updating to smaller format stores.
These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both the top and the bottom lines grew year over year. Sprouts Farmers has an expected revenue and earnings growth rate of 12.1% and 21.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the last seven days.
The short-term average price target of brokerage firms for the stock represents an increase of 13.5% from the last closing price of $148.40.
Photo by; Alexander Schimmeck on Unsplash
