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Will Bread Financial (BFH) Retain Beat Streak in Q1 Earnings?
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Bread Financial Holdings, Inc. (BFH - Free Report) is scheduled to report first-quarter 2022 earnings on Apr 27, before the opening bell. The company delivered an earnings surprise in each of the last four quarters, the average being 83.91%.
Factors to Note
Decreases in the provision for loan loss due to improved credit performance, reduction in interest expense, net due to lower average balances and higher revenues are likely to have driven performance in the to-be-reported quarter.
Higher finance charges, owing to the increase in finance charge yield resulting from higher late fees may get reflected in revenues in the to-be-reported quarter.
Credit performance is likely to have witnessed an uptick in the to-be-reported quarter, driven by prudent risk management strategy changes, improved underwriting actions, and direct consumer stimulus payments that result in greater customer liquidity and ability to pay as well as new brand partner signings and successful renewals.
Disciplined risk management, higher consumer saving rates across the industry and a greater ability to pay are likely to have resulted in a lower loss rate in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $906.9 million, which indicates a decline of 16.4% from the prior-year quarter.
Total expenses are likely to have decreased due to improved funding costs and efficiencies in operations. The decrease is expected to have been partially offset by higher investment in marketing, technology infrastructure and digital.
The Zacks Consensus Estimate for earnings per share is pegged at $4.43, indicating a decrease of 29.5% from the year-ago quarter’s reported figure.
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Bread Financial this time around. This is because BFH has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Bread Financial has an Earnings ESP of +1.53%. This is because the Most Accurate Estimate is pegged at $4.50, higher than the Zacks Consensus Estimate of $4.43. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bread Financial Holdings, Inc. Price and EPS Surprise
Some other stocks worth considering from the business services sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
WEX (WEX - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year increase of 51.4%.
WEX’s earnings surpassed estimates in each of the last four quarters, the average beat being 9.96%.
FleetCor Technologies has an Earnings ESP of +1.40% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year increase of 25.2%.
FLT’s earnings surpassed estimates in each of the last four quarters, the average beat being 4.13%.
Visa (V - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank of 3. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year increase of 19.6%.
V’s earnings surpassed estimates in each of the last four quarters, the average beat being 8.63%.
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Will Bread Financial (BFH) Retain Beat Streak in Q1 Earnings?
Bread Financial Holdings, Inc. (BFH - Free Report) is scheduled to report first-quarter 2022 earnings on Apr 27, before the opening bell. The company delivered an earnings surprise in each of the last four quarters, the average being 83.91%.
Factors to Note
Decreases in the provision for loan loss due to improved credit performance, reduction in interest expense, net due to lower average balances and higher revenues are likely to have driven performance in the to-be-reported quarter.
Higher finance charges, owing to the increase in finance charge yield resulting from higher late fees may get reflected in revenues in the to-be-reported quarter.
Credit performance is likely to have witnessed an uptick in the to-be-reported quarter, driven by prudent risk management strategy changes, improved underwriting actions, and direct consumer stimulus payments that result in greater customer liquidity and ability to pay as well as new brand partner signings and successful renewals.
Disciplined risk management, higher consumer saving rates across the industry and a greater ability to pay are likely to have resulted in a lower loss rate in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $906.9 million, which indicates a decline of 16.4% from the prior-year quarter.
Total expenses are likely to have decreased due to improved funding costs and efficiencies in operations. The decrease is expected to have been partially offset by higher investment in marketing, technology infrastructure and digital.
The Zacks Consensus Estimate for earnings per share is pegged at $4.43, indicating a decrease of 29.5% from the year-ago quarter’s reported figure.
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Bread Financial this time around. This is because BFH has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Bread Financial has an Earnings ESP of +1.53%. This is because the Most Accurate Estimate is pegged at $4.50, higher than the Zacks Consensus Estimate of $4.43. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bread Financial Holdings, Inc. Price and EPS Surprise
Bread Financial Holdings, Inc. price-eps-surprise | Bread Financial Holdings, Inc. Quote
Zacks Rank: Bread Financial carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks worth considering from the business services sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
WEX (WEX - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year increase of 51.4%.
WEX’s earnings surpassed estimates in each of the last four quarters, the average beat being 9.96%.
FleetCor Technologies has an Earnings ESP of +1.40% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year increase of 25.2%.
FLT’s earnings surpassed estimates in each of the last four quarters, the average beat being 4.13%.
Visa (V - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank of 3. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year increase of 19.6%.
V’s earnings surpassed estimates in each of the last four quarters, the average beat being 8.63%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.