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Compared to Estimates, Bread Financial (BFH) Q1 Earnings: A Look at Key Metrics

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For the quarter ended March 2025, Bread Financial Holdings (BFH) reported revenue of $970 million, down 2.1% over the same period last year. EPS came in at $2.86, compared to $2.73 in the year-ago quarter.

The reported revenue represents a surprise of +1.28% over the Zacks Consensus Estimate of $957.76 million. With the consensus EPS estimate being $2.10, the EPS surprise was +36.19%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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:

  • Efficiency Ratio: 49.1% versus the three-analyst average estimate of 52.4%.

  • Net Interest Margin: 18.1% versus 17.8% estimated by three analysts on average.

  • Total Risk-based Capital Ratio: 15.5% versus 14.2% estimated by two analysts on average.

  • Common equity tier 1 Capital Ratio: 12% versus 12.8% estimated by two analysts on average.

  • Total interest income: $1.23 billion compared to the $1.25 billion average estimate based on four analysts.

  • Interest on cash and investment securities: $46 million compared to the $49.26 million average estimate based on four analysts.

  • Interchange revenue, net of retailer shares arrangements: -$83 million versus -$96.84 million estimated by four analysts on average.

  • Interest and fees on loans: $1.19 billion versus $1.20 billion estimated by four analysts on average.

  • Net interest income: $1.01 billion versus the four-analyst average estimate of $1.01 billion.

  • Total non-interest income: -$36 million compared to the -$51.58 million average estimate based on four analysts.

  • Other Non-Interest Income: $47 million versus $44.74 million estimated by four analysts on average.

View all Key Company Metrics for Bread Financial here>>>

Shares of Bread Financial have returned -7% over the past month versus the Zacks S&P 500 composite's -5.1% 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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