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Is Bread Financial Poised for a Beat This Earnings Season?
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Key Takeaways
BFH is projected to post Q4 revenues of $949M, up 2.5% year over year, while EPS may decline 7.3%.
A 32.20% positive Earnings ESP and Zacks Rank of 2 suggest BFH could beat earnings expectations.
Growth in Bread Pay, credit sales and share buybacks may support Q4 performance despite higher expenses.
Bread Financial Holdings (BFH - Free Report) is expected to report an improvement in its top line but a decline in its bottom line when it releases fourth-quarter 2025 results on Jan. 29, before the opening bell.
The Zacks Consensus Estimate for BFH’s fourth-quarter revenues is pegged at $949 million, indicating 2.5% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at 38 cents per share. The Zacks Consensus Estimate for BFH’s fourth-quarter earnings has witnessed no movement in the past seven days. The estimate indicates a year-over-year decrease of 7.3%.
Decent Earnings Surprise History
Bread Financial’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 55.17%. This is depicted in the following chart.
What the Zacks Model Unveils for BFH
Our proven model predicts an earnings beat for Bread Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: BFH has an Earnings ESP of +32.20%. This is because the Most Accurate Estimate of 51 cents is pegged higher than the Zacks Consensus Estimate of 38 cents.
Bread Financial Holdings, Inc. Price and EPS Surprise
BFH’s fourth-quarter results are likely to benefit from diversification of its product mix through partner co-brand growth, proprietary cards and the expansion of Bread Pay to drive credit sales.
Credit sales are likely to have improved, aided by new partner growth and increased general-purpose spending. Our estimate for credit sales is pegged at $8.2 billion, indicating an upside of 3.3% year over year.
Higher interest and fees on loans are likely to have led to an increase in total interest income. Our estimate for total interest income is pegged at $1.3 billion, implying an increase of 2.6% year over year. The Zacks Consensus Estimate is pegged at $1.2 billion.
Average and end-of-period credit card and other loans are likely to have been impacted by an increasing payment rate and the ongoing effect of elevated gross losses. Our estimates for average and end-of-period credit card and other loans are pegged at $173.5 billion and $18.2 billion, respectively.
Interest expense is likely to have increased owing to higher interest on borrowings. Our estimate for interest expense is pegged at $238.2 million, suggesting an upside of 3.1% year over year.
Net interest margin is likely to have been weighed down by lower billed late fees due to a decline in delinquencies and an elevated cash position, partially offset by the gradual build of implemented pricing changes.
A rise in non-interest expenses is likely to have induced a higher net loss rate.
Share buybacks are likely to have boosted the bottom line.
Other Stocks to Consider
Some other financial miscellaneous service providers with the right combination of elements to deliver an earnings beat this time around are:
The Blackstone Group (BX - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.51 per share, indicating a year-over-year decrease of 10.7%
BX’s earnings beat estimates in the last four reported quarters.
Virtu Financial (VIRT - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.26 per share, indicating a year-over-year increase of 10.5%.
VIRT’s earnings beat estimates in each of the last four reported quarters.
SoFi Technologies (SOFI - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 12 cents per share, indicating a year-over-year increase of 140%.
SOFI’s earnings beat estimates in each of the last four reported quarters.
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Is Bread Financial Poised for a Beat This Earnings Season?
Key Takeaways
Bread Financial Holdings (BFH - Free Report) is expected to report an improvement in its top line but a decline in its bottom line when it releases fourth-quarter 2025 results on Jan. 29, before the opening bell.
The Zacks Consensus Estimate for BFH’s fourth-quarter revenues is pegged at $949 million, indicating 2.5% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at 38 cents per share. The Zacks Consensus Estimate for BFH’s fourth-quarter earnings has witnessed no movement in the past seven days. The estimate indicates a year-over-year decrease of 7.3%.
Decent Earnings Surprise History
Bread Financial’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 55.17%. This is depicted in the following chart.
What the Zacks Model Unveils for BFH
Our proven model predicts an earnings beat for Bread Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: BFH has an Earnings ESP of +32.20%. This is because the Most Accurate Estimate of 51 cents is pegged higher than the Zacks Consensus Estimate of 38 cents.
Bread Financial Holdings, Inc. Price and EPS Surprise
Bread Financial Holdings, Inc. price-eps-surprise | Bread Financial Holdings, Inc. Quote
Zacks Rank: BFH carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape BFH’s Q4 Results
BFH’s fourth-quarter results are likely to benefit from diversification of its product mix through partner co-brand growth, proprietary cards and the expansion of Bread Pay to drive credit sales.
Credit sales are likely to have improved, aided by new partner growth and increased general-purpose spending. Our estimate for credit sales is pegged at $8.2 billion, indicating an upside of 3.3% year over year.
Higher interest and fees on loans are likely to have led to an increase in total interest income. Our estimate for total interest income is pegged at $1.3 billion, implying an increase of 2.6% year over year. The Zacks Consensus Estimate is pegged at $1.2 billion.
Average and end-of-period credit card and other loans are likely to have been impacted by an increasing payment rate and the ongoing effect of elevated gross losses. Our estimates for average and end-of-period credit card and other loans are pegged at $173.5 billion and $18.2 billion, respectively.
Interest expense is likely to have increased owing to higher interest on borrowings. Our estimate for interest expense is pegged at $238.2 million, suggesting an upside of 3.1% year over year.
Net interest margin is likely to have been weighed down by lower billed late fees due to a decline in delinquencies and an elevated cash position, partially offset by the gradual build of implemented pricing changes.
A rise in non-interest expenses is likely to have induced a higher net loss rate.
Share buybacks are likely to have boosted the bottom line.
Other Stocks to Consider
Some other financial miscellaneous service providers with the right combination of elements to deliver an earnings beat this time around are:
The Blackstone Group (BX - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.51 per share, indicating a year-over-year decrease of 10.7%
BX’s earnings beat estimates in the last four reported quarters.
Virtu Financial (VIRT - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.26 per share, indicating a year-over-year increase of 10.5%.
VIRT’s earnings beat estimates in each of the last four reported quarters.
SoFi Technologies (SOFI - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 12 cents per share, indicating a year-over-year increase of 140%.
SOFI’s earnings beat estimates in each of the last four reported quarters.