BFH Earnings Prediction
The chart below shows how BFH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BFH sees a -1.76% change in stock price 10 days leading up to the earnings, and a +4.02% change 10 days following the report. On the earnings day itself, the stock moves by +1.03%. This data can give you a slight idea of what to expect for the next quarter's release.
BFH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.11B
-0.36%
3.45%
Gross Margin
--
--
--
Operating Margin
3.61%
-82.15%
-78.50%
Net Margin
0.27%
-98.26%
-97.82%
EPS
0.04
-98.83%
-98.49%
No Data Available
BFH Earnings Analysis
Bread Financial Holdings, Inc. Corporation (BFH.N) Earnings Conference Call
Positive
Adjusted Net Income Strength: 1. Strong Adjusted Net Income: Bread Financial reported an adjusted net income of $93 million for Q3 2024, demonstrating robust profitability despite market challenges.
Tangible Book Value Increase: 2. Increased Tangible Book Value: The company's tangible book value per share rose to $47.48, reflecting a 12% year-over-year increase, indicating strong capital growth.
Capital Ratio Improvement: 3. Improved Capital Ratios: The common equity Tier 1 capital ratio increased by 40 basis points year-over-year to 13.3%, showcasing enhanced financial stability and capital strength.
Debt Repurchase Success: 4. Successful Debt Repurchase: The company repurchased $262 million of its convertible notes, significantly reducing future dilution risk and improving its capital structure.
Direct-to-Consumer Deposit Growth: 5. Growth in Direct-to-Consumer Deposits: Direct-to-consumer deposits grew to $7.5 billion, accounting for 41% of average funding, up from 35% a year ago, indicating a strong funding mix improvement.
Negative
Credit Sales Decline: 1. Declining Credit Sales: Credit sales decreased by 3% year-over-year to $6.5 billion, reflecting moderating consumer spending and ongoing strategic credit tightening.
Quarterly Revenue Decline: 2. Revenue Decrease: Revenue for the quarter was $1.0 billion, down 5% year-over-year, primarily due to lower late fees and reduced merchant discount fees from decreased big-ticket credit sales.
Rising Non-Interest Expenses: 3. Increased Non-Interest Expenses: Total non-interest expenses rose by $72 million or 14% year-over-year, largely driven by a $96 million pre-tax impact from the premium paid on repurchased convertible notes.
Delinquency Rate Increase: 4. Higher Delinquency Rate: The delinquency rate increased to 6.4%, up 40 basis points from the previous quarter, indicating a deterioration in credit quality.
Net Loss Rate Rise: 5. Net Loss Rate Increase: The net loss rate for the quarter was 7.8%, compared to 6.9% in the same quarter last year, reflecting increased credit losses amid a challenging economic environment.
BFH FAQs
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BFH Earning Call Sentiment
Bread Financial Holdings, Inc. (BFH) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
BFH.N
-0.56%Positive
The earnings call indicates a mixed performance with both positive and negative elements. Financial performance shows declines in revenue, EPS, and PPNR, but positive aspects include increased tangible book value per share and CET1 ratio. Product development and business updates are neutral, with a strong pipeline but uncertain impacts from late fee mitigants. Market strategy and expenses reflect strategic credit tightening and increased expenses due to convertible note repurchases. Shareholder return plans are unclear. The Q&A section highlights macro-dependency and unclear management responses. Given the small-cap nature of the stock, a neutral sentiment is expected.
