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Compared to Estimates, Bread Financial (BFH) Q2 Earnings: A Look at Key Metrics
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Bread Financial Holdings (BFH - Free Report) reported $952 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 6.6%. EPS of $1.27 for the same period compares to $0.25 a year ago.
The reported revenue represents a surprise of +234961.70% over the Zacks Consensus Estimate of $0.41 million. With the consensus EPS estimate being $0.23, the EPS surprise was +452.17%.
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: 18.7% compared to the 19.34% average estimate based on four analysts.
Efficiency Ratio: 55.7% versus 58.92% estimated by four analysts on average.
Total Risk-based Capital Ratio: 19.8% compared to the 21.89% average estimate based on two analysts.
Tier 1 Capital Ratio: 18.4% compared to the 20.35% average estimate based on two analysts.
Total interest-earning assets - Average Balances: $21.27 billion versus the two-analyst average estimate of $22.04 billion.
Tier 1 Leverage Capital Ratio: 16.1% versus the two-analyst average estimate of 17.27%.
Total interest income: $1.20 billion versus the seven-analyst average estimate of $1.25 billion.
Interest on cash and investment securities: $44 million versus $43.56 million estimated by seven analysts on average.
Interchange revenue, net of retailer shares arrangements: -$74 million versus the seven-analyst average estimate of -$92.18 million.
Interest and fees on loans: $1.15 billion compared to the $1.21 billion average estimate based on seven analysts.
Net interest income: $992 million versus the seven-analyst average estimate of $1.02 billion.
Total non-interest income: -$40 million compared to the -$63.64 million average estimate based on seven analysts.
Shares of Bread Financial have returned +21.5% over the past month versus the Zacks S&P 500 composite's +5.6% 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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Compared to Estimates, Bread Financial (BFH) Q2 Earnings: A Look at Key Metrics
Bread Financial Holdings (BFH - Free Report) reported $952 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 6.6%. EPS of $1.27 for the same period compares to $0.25 a year ago.
The reported revenue represents a surprise of +234961.70% over the Zacks Consensus Estimate of $0.41 million. With the consensus EPS estimate being $0.23, the EPS surprise was +452.17%.
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: 18.7% compared to the 19.34% average estimate based on four analysts.
- Efficiency Ratio: 55.7% versus 58.92% estimated by four analysts on average.
- Total Risk-based Capital Ratio: 19.8% compared to the 21.89% average estimate based on two analysts.
- Tier 1 Capital Ratio: 18.4% compared to the 20.35% average estimate based on two analysts.
- Total interest-earning assets - Average Balances: $21.27 billion versus the two-analyst average estimate of $22.04 billion.
- Tier 1 Leverage Capital Ratio: 16.1% versus the two-analyst average estimate of 17.27%.
- Total interest income: $1.20 billion versus the seven-analyst average estimate of $1.25 billion.
- Interest on cash and investment securities: $44 million versus $43.56 million estimated by seven analysts on average.
- Interchange revenue, net of retailer shares arrangements: -$74 million versus the seven-analyst average estimate of -$92.18 million.
- Interest and fees on loans: $1.15 billion compared to the $1.21 billion average estimate based on seven analysts.
- Net interest income: $992 million versus the seven-analyst average estimate of $1.02 billion.
- Total non-interest income: -$40 million compared to the -$63.64 million average estimate based on seven analysts.
View all Key Company Metrics for Bread Financial here>>>Shares of Bread Financial have returned +21.5% over the past month versus the Zacks S&P 500 composite's +5.6% 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.