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Compared to Estimates, Bread Financial (BFH) Q2 Earnings: A Look at Key Metrics

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For the quarter ended June 2024, Bread Financial Holdings (BFH - Free Report) reported revenue of $939 million, down 1.4% over the same period last year. EPS came in at $2.66, compared to $1.27 in the year-ago quarter.

The reported revenue represents a surprise of +2.21% over the Zacks Consensus Estimate of $918.68 million. With the consensus EPS estimate being $1.60, the EPS surprise was +66.25%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Bread Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Interest Margin: 18% versus 18% estimated by three analysts on average.
  • Efficiency Ratio: 49.9% compared to the 55.3% average estimate based on three analysts.
  • Net principal losses as a percentage of average credit card and other loans (Net loss rate): 8.6% versus the two-analyst average estimate of 8.5%.
  • Common equity tier 1 Capital Ratio: 13.8% versus the two-analyst average estimate of 16%.
  • Total Risk-based Capital Ratio: 15.1% compared to the 17.4% average estimate based on two analysts.
  • Total interest income: $1.23 billion versus $1.21 billion estimated by five analysts on average.
  • Interest on cash and investment securities: $54 million versus $52.03 million estimated by five analysts on average.
  • Interchange revenue, net of retailer shares arrangements: -$84 million compared to the -$93.28 million average estimate based on five analysts.
  • Interest and fees on loans: $1.17 billion versus $1.16 billion estimated by five analysts on average.
  • Net interest income: $987 million compared to the $969.71 million average estimate based on five analysts.
  • Total non-interest income: -$48 million versus -$62.46 million estimated by five analysts on average.
  • Other Non-Interest Income: $31 million versus $30.80 million estimated by five analysts on average.
View all Key Company Metrics for Bread Financial here>>>

Shares of Bread Financial have returned +16% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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