Affirm soars as strong holiday shopping propels BNPL lender to top estimates
Feb 7 (Reuters) - Affirm (AFRM.O), opens new tab shares jumped 16% in premarket trading on Friday, after the buy now, pay later lender posted a surprise quarterly profit on the back of a strong holiday shopping season and forecast an upbeat annual revenue.
Retailers offered discounts on everything from apparel to electronics to lure budget-conscious shoppers, while online sales remained strong.
Gross merchandise volume (GMV) - the total dollar amount of all transactions on the Affirm platform - jumped 35% to $10.1 billion in the second quarter ended December 31, exceeding analysts' estimates of $9.57 billion, according to LSEG.
Affirm was on track to add roughly $3 billion to its market capitalization if the gains hold.
In a letter to shareholders late on Thursday, Affirm said the merchandise and consumer electronics categories contributed significantly to growth.
GMV growth from Affirm's top five merchants and platform partners collectively jumped 40%, partly due to increasing demand from consumers for zero-percent financing.
The San Francisco, California-based company's total revenue soared 47% to $866 million, beating estimates of $807.2 million.
"Affirm is on our short list of transformative fintechs that can become big companies over time," William Blair analyst Andrew Jeffrey said.
Affirm reported net income of $80.4 million, or 23 cents per share, in the October-to-December period, compared with a loss of $166.9 million, or 54 cents per share, a year earlier.
Analysts had expected the company to report a loss of 15 cents per share.
"So far other fintech results have been lackluster this quarter, with some posting significant growth guidance but weak profitability. In contrast, Affirm demonstrated that a fintech can have both strong volume growth and excellent profitability margin," BTIG analysts said.
Affirm also forecast fiscal 2025 revenue between $3.13 billion and $3.19 billion, largely above Street expectations of $3.09 billion.
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Reuters
an hour ago
- Reuters
Rising Asia temperatures bode well for US LNG export prospects
LITTLETON, Colorado, June 11 (Reuters) - U.S. exports of LNG are already at record highs so far in 2025, but forecasts for above-average temperatures across key Asian import markets could lift them even higher this summer. Average temperatures for Japan, South Korea and China are all forecast to hold above normal through the end of August, likely boosting use of power-hungry air conditioners. That higher demand load will in turn spur utilities to lift generation from all available sources, including from natural gas plants fed mainly by imported liquefied natural gas (LNG). That upbeat demand outlook is good news for U.S. LNG exporters, who are riding a wave of strong demand from Europe but face a potential slowdown in European buying this summer. Temperatures across East Asia are already hovering above long-term averages, and are expected to continue trending higher over the next two months. Average temperatures in Japan - the second largest LNG importer after China in 2024 - are expected to register around 6% above the long-term average from now through the end of August, data from LSEG shows. South Korea, Taiwan, Hong Kong and several cities in China are forecast to register similar readings. As the northern hemisphere summer coincides with the rainy season across much of Asia, the forecasted hot temperatures are likely to be mixed with high humidity levels. That in turn will likely spur heavy use of air conditioning systems, which can push power demand levels sharply higher during heatwaves and strain regional power grids. Asia's electricity producers are used to the summer climb in electricity demand and adjust output levels accordingly. In 2024, average electricity demand during June, July and August - the hottest months of the year - was around 9% above the monthly average for the year as a whole. To accommodate that higher load, utilities lifted output from all power sources, but especially from fossil fuel plants which supply power that can be dispatched on command when output from renewable sources drops off. Both gas-fired and coal-fired generation across Asia during June, July and August last year averaged around 5% more than the 2024 monthly average, Ember data shows. To feed the higher demand for power anticipated during June, July and August, Asian LNG importers tend to book higher LNG volumes during May, June and July than during other months. Between 2021 and 2024, U.S. LNG exports to Asia during May, June and July averaged around 7.8 million metric tons a month, according to data from commodity intelligence firm Kpler. That compares to an average of 2.23 million tons a month to Asia overall for the 2021 to 2024 period, and underscores how important LNG is as a power fuel during the Asian summer. A key driver of potential Asian purchases will be the price of LNG, which needs to compete with coal in power generation and has recently proved too dear for many Asian consumers. U.S. LNG export prices have averaged around $8.54 per thousand cubic feet so far in 2025, up 35% from the 2024 average, according to data from LSEG. That said, any rise in Asian LNG purchases would likely come just as LNG orders by Europe tend to retreat to their annual lows, which could apply downward pressure to prices. Over the first half of 2025, European markets accounted for 70% of all U.S. LNG exports, Kpler data shows, while Asian markets accounted for just under 20%. Average monthly volumes of U.S. LNG dispatched to Europe during January to June were around 6 million tons, compared to around 1.6 million tons a month to Asia. A key caveat that will govern Europe's LNG appetite going forward is how quickly gas storage operators there want to replenish inventories, which were depleted over the past winter and must be restocked ahead of next winter. Currently, Europe's gas stockpiles are around half full, which compares to around 70% full at this time of year in 2023 and 2024, according to LSEG. If gas storage operators opt to restock as quickly as possible, then Europe's imports of LNG could remain quite strong over the coming months. But if Europe's storage firms opt instead to wait until the autumn to replenish stocks, or refill tanks from pipelined supplies, then Europe's LNG purchase volumes could drop sharply. Such a sudden wilt in European orders would likely trigger an aggressive markdown in prices, however, and in turn lure fresh buying interest in Asia where power firms are already primed to boost output. That suggests that overall U.S. LNG export volumes should remain fairly robust for the near term at least, regardless of where the buyers reside. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.
Powys County Times
3 hours ago
- Powys County Times
Presteigne residents to have say over former Kaye site plans
PLANNERS will meet with Presteigne residents next week following news that a derelict site in the town that once housed a car parts manufacturer could finally be developed. After lying derelict for almost 15 years, the former Kaye Presteigne site could be transformed into an area that would include 61 homes, a healthcare facility and a retail store. A pre-application consultation exercise has been carried out by Shrewsbury-based property consultants Berrys, with an outline planning application expected to follow soon. Presteigne county councillor Beverley Baynham says she has now met with both Berrys and the applicant, in order to stress the importance of any future development to the town and its residents. A drop-in event has been scheduled to take place next Monday, June 16. 'Following the pre-planning consultation for the Kayes site I met with the applicant and the planning agent last week where I impressed on them the importance of the proposed development on the community,' Cllr Baynham said on her Facebook page on Tuesday. 'I am pleased to say they have agreed to hold a drop-in session on Monday 16th June from 3pm at (the) East Radnor Day Centre building on Scottleton Street. 'This is your opportunity to tell them what you would and would not like to see progress to a planning application.' Kaye Presteigne made parts for car engines, including steering and braking mechanisms, before entering administration in 2010. The foundry, which was known more fondly as Kaye Alloys or simply as 'The Factory', closed in April 2011, with the loss of 100 jobs; 80 per cent of the company's workforce were thought to have lived in Presteigne. Kaye Presteigne was formed in 2006, saving more than 130 jobs, after the former owners J L French went into administration. There has been a foundry in Presteigne since the 1940s and its closure in 2011 brought down the curtain on more than 60 years of it being one of the largest employers in the area. Soon after, the buildings were demolished and the site has lain dormant ever since. Help support trusted local news Sign up for a digital subscription now: As a digital subscriber you will get Unlimited access to the County Times website Advert-light access Reader rewards Full access to our app Plans have been drawn up by Berrys on behalf of the site owners, Central & Country (Presteigne) Ltd. 'Whilst the site owners have sought to keep the site secure and tidy, the site is an eyesore, significantly detracting from Presteigne's townscape,' said Berrys, in a planning statement. 'As a consequence, while the site owners have sought to keep the site secure and tidy, the site can attract trespass, vandalism, fly tipping and other anti-social behaviour.' It is envisaged that the proposed development will comprise of 61 houses in total, including 18 1-bed, 22 2-bed, 10 3-bed and 2 4-bed homes; and 3 1-bed, 5 2-bed and 1 3-bed bungalows, in addition to the healthcare and retail facilities. 'The initial application is an outline planning application, with all matters reserved aside from access in order to establish the principle of the proposed development,' continued the planning statement. 'A detailed scheme for the site, including layout, landscaping, detailed design and appearance has yet to be drawn up.'
Reuters
3 hours ago
- Reuters
BOJ to postpone rate hike to Q1 next year, tiny majority of economists say: Reuters poll
TOKYO, June 11 (Reuters) - The Bank of Japan will forego another interest rate hike this year due to uncertainty over U.S. tariff policy, according to a slight majority of economists in a Reuters poll who expect the next 25-basis-point increase in early 2026. Japan's central bank will slow the pace of tapering its government bond purchases from next fiscal year, a majority also said, while three in four surveyed expect the government to cut down on issuance of super-long bonds. The latest results reflect policymakers' apprehension at a time when U.S. President Donald Trump's erratic tariff policies are threatening the economic outlook and as investors are increasingly concerned about Japan's public finances. The BOJ is still pushing for tighter monetary conditions, contrasting with its peers tilting for rate cuts, with its governor Kazuo Ueda stressing the central bank's readiness to keep raising interest rates if underlying inflation approaches its 2% target. "If trade negotiations between the United States and other countries progress, global economic activity is likely to pick up," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. "The timing of policy interest rate hikes is now more likely to be delayed compared to previous projections, but the BOJ is expected to implement an additional rate hike in the first quarter of 2026." None of the 60 economists in the June 2-10 survey expected the BOJ to raise rates at its upcoming policy meeting on June 16-17. Specifically, 52% of economists, 30 of 58, expected borrowing costs to stay at 0.50% at year-end, the reverse of a poll in May when 52% expected rates at 0.75% by end-2025. Interest rate futures are only pricing in about 17 basis points more of tightening from the BOJ by year-end. More than three-quarters of respondents, 40 of 51, now expect at least one 25-basis-point increase by end-March, the poll showed. Of 35 economists who specified a month for when the BOJ will next hike rates, January 2025 was the top choice at 37%, followed by 23% for October this year and 9% saying March 2025. The BOJ exited a massive stimulus programme in March last year and pushed up short-term interest rates to 0.25% in July and 0.50% in January. Just over half of respondents, 17 of 31, said the BOJ would decelerate its pace of tapering JGB purchases from the current roughly 400 billion yen per quarter beyond April next year. Of those respondents the quarterly taper size prediction ranged from 200 billion yen to 370 billion yen. The BOJ began tapering its huge bond buying last year to wean the economy off decades of massive stimulus even though it still owns roughly half of outstanding JGBs. Three-quarters of economists, 21 of 28, said the government would trim issuance of super-long bonds while the rest said the amount would not change. Yields on super-long JGBs rose to record levels last month due to dwindling demand from traditional buyers like life insurers and concern over steadily rising debt levels. Reuters reported on Monday the government is considering buying back some super-long bonds it issued at low interest rates on top of an expected government plan to trim issuance of super-long bonds in the wake of sharp rises in yields. Seventeen said the issuance of 30-year JGBs would be reduced, followed by 16 selecting 40-year and 10 choosing 20-year bonds. Survey respondents were allowed to give multiple responses. "With the auction results consistently weak, the finance ministry is facing strong pressure to reduce the amount of super-long JGBs issued from July onwards," said Kazutaka Maeda, economist at Meiji Yasuda Research Institute. (Other stories from the June Reuters global economic poll)
