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Here's What to Expect From Bread Financial's (BFH) Q3 Earnings
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Bread Financial Holdings, Inc. (BFH - Free Report) is scheduled to report third-quarter 2022 earnings on Oct 27, before the opening bell. The company delivered an earnings surprise in two of the last four quarters while missing in the other two.
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 Bread Financial’s performance in the to-be-reported quarter.
Credit performance is likely to have witnessed an uptick in the to-be-reported quarter, driven by increased consumer spending as well as new brand partner signings and successful renewals. We expect credit sales to increase 12.9% to $8.3 billion in the to be reported quarter.
Improving credit sales and moderating payment rates are likely to have aided an improvement in average receivables. We expect average receivables to increase 15.3% to $$17.8 billion at third quarter end.
Total interest income is expected to have benefited from higher average loan balances and improved loan yields. We expect total interest income to be $1.1 billion, up 14.2% from year ago reported number.
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 third-quarter revenues is pegged at $967.6 million, which indicates a decline of 12% from the prior-year quarter. We expect total revenues to be $937.2 million.
As a result of ongoing investment in technology modernization, digital advancement, marketing, and product innovation, along with strong portfolio growth, BFH expects increased expenses in the to-be-reported quarter.
BFH estimates higher marketing expense in the third quarter, owing to higher spending to ensure higher sales and brand partner joint marketing campaigns. With the expansion of brand products and direct-to-consumer offerings, BFH expects marketing expenses to increase.
The Zacks Consensus Estimate for earnings per share is pegged at $2.69, indicating a decrease of 39.8% from the year-ago quarter’s reported figure.
What Our Quantitative Model Unveils
Our proven model does not conclusively predict an earnings beat for Bread Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case as you can see belowp
Earnings ESP: Bread Financial has an Earnings ESP of -7.21%. This is because the Most Accurate Estimate is pegged at $2.49, lower than the Zacks Consensus Estimate of $2.69. 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 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:
Western Union (WU - Free Report) has an Earnings ESP of +4.27% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 41 cents, indicating a decrease of 34.9% from the year-ago reported figure.
WU’s earnings beat estimates in the last four reported quarters.
FleetCor Technologies has an Earnings ESP of +1.13% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at $4.18, indicating an increase of 18.8% from the year-ago reported figure.
FLT’s earnings beat estimates in the last four reported quarters.
Automatic Data Processor (ADP - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at $1.78, indicating an increase of 7.9% from the year-ago reported figure.
ADP’s earnings beat estimates in the last four reported quarters.
Image: Bigstock
Here's What to Expect From Bread Financial's (BFH) Q3 Earnings
Bread Financial Holdings, Inc. (BFH - Free Report) is scheduled to report third-quarter 2022 earnings on Oct 27, before the opening bell. The company delivered an earnings surprise in two of the last four quarters while missing in the other two.
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 Bread Financial’s performance in the to-be-reported quarter.
Credit performance is likely to have witnessed an uptick in the to-be-reported quarter, driven by increased consumer spending as well as new brand partner signings and successful renewals. We expect credit sales to increase 12.9% to $8.3 billion in the to be reported quarter.
Improving credit sales and moderating payment rates are likely to have aided an improvement in average receivables. We expect average receivables to increase 15.3% to $$17.8 billion at third quarter end.
Total interest income is expected to have benefited from higher average loan balances and improved loan yields. We expect total interest income to be $1.1 billion, up 14.2% from year ago reported number.
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 third-quarter revenues is pegged at $967.6 million, which indicates a decline of 12% from the prior-year quarter. We expect total revenues to be $937.2 million.
As a result of ongoing investment in technology modernization, digital advancement, marketing, and product innovation, along with strong portfolio growth, BFH expects increased expenses in the to-be-reported quarter.
BFH estimates higher marketing expense in the third quarter, owing to higher spending to ensure higher sales and brand partner joint marketing campaigns. With the expansion of brand products and direct-to-consumer offerings, BFH expects marketing expenses to increase.
The Zacks Consensus Estimate for earnings per share is pegged at $2.69, indicating a decrease of 39.8% from the year-ago quarter’s reported figure.
What Our Quantitative Model Unveils
Our proven model does not conclusively predict an earnings beat for Bread Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case as you can see belowp
Earnings ESP: Bread Financial has an Earnings ESP of -7.21%. This is because the Most Accurate Estimate is pegged at $2.49, lower than the Zacks Consensus Estimate of $2.69. 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.
Stocks to Consider
Some 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:
Western Union (WU - Free Report) has an Earnings ESP of +4.27% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 41 cents, indicating a decrease of 34.9% from the year-ago reported figure.
WU’s earnings beat estimates in the last four reported quarters.
FleetCor Technologies has an Earnings ESP of +1.13% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at $4.18, indicating an increase of 18.8% from the year-ago reported figure.
FLT’s earnings beat estimates in the last four reported quarters.
Automatic Data Processor (ADP - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at $1.78, indicating an increase of 7.9% from the year-ago reported figure.
ADP’s earnings beat estimates in the last four reported quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.