What To Expect From Bread Financial's (BFH) Q4 Earnings

Financial services company Bread Financial (NYSE:BFH) will be reporting earnings this Thursday morning. Here’s what to look for.

Bread Financial met analysts’ revenue expectations last quarter, reporting revenues of $971 million, down 1.2% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and .

Is Bread Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Bread Financial’s revenue to grow 3.1% year on year to $954.4 million, a reversal from the 8.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bread Financial has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Bread Financial’s peers in the consumer finance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Synchrony Financial posted flat year-on-year revenue, missing analysts’ expectations by 1.5%, and Capital One reported revenues up 53.3%, topping estimates by 0.9%. Capital One traded down 7.5% following the results.

Read our full analysis of Synchrony Financial’s results here and Capital One’s results here.

Investors in the consumer finance segment have had steady hands going into earnings, with share prices flat over the last month. Bread Financial is down 7.6% during the same time and is heading into earnings with an average analyst price target of $80.07 (compared to the current share price of $70.70).

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