In its upcoming report, Bread Financial Holdings (BFH) is predicted by Wall Street analysts to post quarterly earnings of $0.38 per share, reflecting a decline of 7.3% compared to the same period last year. Revenues are forecasted to be $948.99 million, representing a year-over-year increase of 2.5%.
Over the last 30 days, there has been a downward revision of 0.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Bread Financial metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Net Interest Margin' will reach 18.0%. Compared to the present estimate, the company reported 17.8% in the same quarter last year.
It is projected by analysts that the 'Efficiency Ratio' will reach 55.0%. Compared to the current estimate, the company reported 57.8% in the same quarter of the previous year.
The average prediction of analysts places 'Net loss rate (Net principal losses as a percentage of average credit card and other loans)' at 7.7%. Compared to the current estimate, the company reported 8.0% in the same quarter of the previous year.
Analysts forecast 'Tier 1 capital ratio' to reach 13.6%. Compared to the present estimate, the company reported 12.4% in the same quarter last year.
Analysts predict that the 'Total risk-based capital ratio' will reach 16.6%. Compared to the current estimate, the company reported 13.8% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Total interest income' of $1.23 billion. Compared to the current estimate, the company reported $1.22 billion in the same quarter of the previous year.
According to the collective judgment of analysts, 'Interest on cash and investment securities' should come in at $40.70 million. The estimate compares to the year-ago value of $44.00 million.
The combined assessment of analysts suggests that 'Interest and fees on loans' will likely reach $1.19 billion. The estimate is in contrast to the year-ago figure of $1.18 billion.
Analysts' assessment points toward 'Net interest income' reaching $1.02 billion. The estimate is in contrast to the year-ago figure of $988.00 million.
Based on the collective assessment of analysts, 'Other' should arrive at $54.59 million. Compared to the present estimate, the company reported $46.00 million in the same quarter last year.
View all Key Company Metrics for Bread Financial here>>>
Over the past month, shares of Bread Financial have returned -6.9% versus the Zacks S&P 500 composite's +0.8% change. Currently, BFH carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Bread Financial Holdings, Inc. (BFH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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