NYSE$BFH

Bread Financial Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Bread Financial's Q2 2024 performance reflected strong returns through disciplined expense management and balance sheet strengthening.

Bread Financial reported a net income of $133 million for Q2 2024. The company's revenue was $939 million, a slight decrease of 1% compared to the same quarter last year. Expenses decreased by 12%, and the CET1 capital ratio increased to 13.8%.

  • Net income increased $85 million year-over-year.
  • Revenue decreased $13 million, or 1% year-over-year.
  • Expenses decreased $61 million, or 12% year-over-year.
  • Common equity tier 1 (CET1) capital ratio increased 170 basis points year-over-year.

Headline financials

Total Revenue

$987M

Previous: $992M-0.5%
EPS

$2.66

Previous: $1.27+109.4%
Delinquency Rate

6.0%

Previous: 5.5%+9.1%
CET1 Capital Ratio

13.8%

No prior period
Capital Expenditures

-$9M

No prior period
Free Cash Flow

$133M

Previous: $48M+177.1%
Net Income

$133M

Previous: $48M+177.1%
Operating Income

$307M

Previous: $271M+13.3%
Gross Profit

$697M

Previous: $656M+6.3%
Stock-Based Comp

$13M

Previous: $13M+0.0%

Revenue & EPS history

Bread Financial · Revenue · Quarterly

$987M

Q2 2024-0.5%vs Q2 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Bread Financial anticipates slower sales growth due to moderating consumer spending and strategic credit tightening. The 2024 outlook assumes no impact from the CFPB late fee rule due to ongoing litigation.

Tailwinds

  • Strategic credit actions are expected to benefit the net loss rate.
  • Assumed gradual modest improvement in economic conditions throughout the year.
  • Ongoing investments in technology modernization and digital advancement.
  • Disciplined expense management.
  • Expect expenses to be down mid-single digits relative to 2023.

Headwinds

  • Slower sales growth due to continued moderation in consumer spending.
  • Strategic credit tightening is pressuring loan and revenue growth and the net loss rate.
  • Multiple interest rate decreases by the Federal Reserve will pressure total net interest income.
  • Expect 2024 average credit card and other loans to be down low single digits relative to 2023.
  • Total revenue growth, excluding gains on portfolio sales, is anticipated to be down low- to mid-single digits.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.8%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.3%

Avg return

30 days after

59%

41 / 69 earnings

Positive

+17.8%

Q3 2020

Best reaction

-19.0%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-6.6%-6.5%
Q4 2025+7.4%+10.6%+3.9%
Q3 2025+8.4%+7.3%+6.9%
Q2 2025+0.6%-2.0%+3.5%
Q1 2025+2.5%+1.2%+5.7%
Q4 2024-0.5%-5.4%-15.2%
Q3 2024+0.2%-1.8%+13.8%
Q2 2024+9.2%+8.1%+12.4%
Q1 2024+4.2%+3.9%+17.9%
Q4 2023+16.4%+20.3%+20.6%
Q3 2023-2.5%-2.8%-2.2%
Q2 2023+12.0%+11.4%+1.7%
Q1 2023+3.3%-7.0%+11.0%
Q4 2022-5.8%-4.0%-7.2%
Q3 2022+5.9%+12.6%+21.3%
Q2 2022-5.2%-10.0%-8.0%
Q1 2022+6.0%+3.5%+1.8%
Q4 2021+1.7%+5.0%+1.8%
Q3 2021-3.7%-2.1%+2.4%
Q2 2021-5.9%-6.1%-1.2%
Q1 2021+9.3%+10.9%+12.2%
Q4 2020+0.1%+3.2%+42.8%
Q3 2020+17.8%+31.1%+70.4%
Q2 2020+4.3%+1.1%+1.5%
Q1 2020+10.1%+29.8%+14.6%
Q4 2019-6.3%-6.6%-21.7%
Q3 2019-15.3%-16.0%-15.6%
Q2 2019+0.5%+2.9%-8.0%
Q1 2019-4.9%-2.9%-13.0%
Q4 2018-8.7%-6.0%-7.5%
Q3 2018+2.2%-2.8%-6.3%
Q2 2018+3.1%+2.8%+5.3%
Q1 2018-2.0%-3.9%-1.6%
Q4 2017+0.9%-1.9%-6.7%
Q3 2017+4.8%+5.0%-1.8%
Q2 2017-10.2%-8.1%-16.0%
Q1 2017+7.8%+9.3%-2.3%
Q4 2016-2.2%+0.5%+7.7%
Q3 2016-6.9%-5.1%+1.3%
Q2 2016+7.5%+8.4%-6.9%
Q1 2016-5.5%
Q4 2015-19.0%
Q3 2015+7.2%
Q2 2015-9.1%
Q1 2015-2.5%
Q4 2014-6.1%
Q3 2014+8.8%
Q2 2014-1.6%
Q1 2014-7.5%
Q4 2013+13.2%
Q3 2013+2.5%
Q2 2013+3.0%
Q1 2013+1.9%
Q4 2012+2.2%
Q3 2012+4.0%
Q2 2012+0.5%
Q1 2012+0.5%
Q4 2011-0.3%
Q3 2011+0.7%
Q2 2011-3.7%
Q1 2010+1.0%
Q1 2011+1.0%
Q4 2008-1.0%
Q4 2010-1.0%
Q3 2010+0.4%
Q3 2009+0.4%
Q4 2009-0.5%
Q2 2010-0.5%
Q2 2009-0.5%

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