Affirm (AFRM) shares tanked and were briefly halted for volatility in the last hour of trading on Thursday after the buy-now-pay-later company posted its quarterly results during market hours, following a tweet which revealed part of the print. The stock closed 21% lower at $58.68.
Shares had been in the green ahead of results during the trading day. A tweet with some of the company’s latest quarterly results, including growth in number of transactions and active consumers, was posted before 2 p.m. ET and then quickly deleted.
But eagle-eyed market watchers snapped screen shots of the tweet. The stock initially spiked by about 10% following the message on Twitter, then gave back some of those gains.
At around 2:48 p.m. ET, the company posted its full quarterly results, later noting a “human error” was the cause behind the release of “a small portion” of Affirm’s fiscal Q2 results which were “inadvertently tweeted.”
Shares tanked as much as 33% after the full results were released. The company posted a wider-than-expected loss per share and Q3 revenue outlook which missed Wall Street expectations.
These are the firm’s results for its 2nd quarter of fiscal year 2022, compared with Wall Street analyst consensus expectations, as compiled by Bloomberg:
Loss per share: -57 cents vs – 37 cents expected
Revenue: $361 million vs $332.5 million expected
Affirm’s third quarter revenue outlook is $325 million to $335 million. The consensus estimate was for $334.8 million.
Some of the other highlights from the results include:
Gross merchandise volume (“GMV”) for the second quarter of fiscal 2022 was $4.5 billion, an increase of 115%.
Active merchants increased from 8,000 to 168,000
Active consumers grew 150% to 11.2 million and increased by 2.5 million, or 29%, compared to the period ended September 30, 2021.
Affirm’s stock gained 105% in 2021. Year-to-date, shares are down more than 38%.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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Source: https://finance.yahoo.com/news/affirm-stock-tanks-after-inadvertent-earnings-results-tweet-weak-revenue-guidance-212329813.html