Financial services company Bread Financial (NYSE: BFH) will be announcing earnings results this Thursday morning. Here’s what to expect.
Bread Financial beat analysts’ revenue expectations last quarter, reporting revenues of $993 million, up 6.9% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and net interest income in line with analysts’ estimates.
Is Bread Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Bread Financial’s revenue to grow 4.3% year on year, a reversal from the 1.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Bread Financial has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Bread Financial’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Capital One delivered year-on-year revenue growth of 5.5%, meeting analysts’ expectations, and Synchrony Financial reported flat revenue, in line with consensus estimates.
Read our full analysis of Capital One’s results here and Synchrony Financial’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.3% on average over the last month. Bread Financial is down 3.1% during the same time and is heading into earnings with an average analyst price target of $114.69 (compared to the current share price of $104.62).
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