Earnings Per Share (EPS) of $0.41 surpassed the estimated $0.34, indicating better-than-expected profitability despite a year-over-year decline.
Revenue fell short of estimates at $926 million, marking a 9% decline from the previous year and highlighting challenges in meeting market expectations.
Financial Ratios such as the price-to-earnings (P/E) ratio of approximately 10.15 and the debt-to-equity ratio of approximately 1.47 provide insights into BFH’s valuation, performance, and financial leverage.
Bread Financial Holdings, Inc. (NYSE:BFH) is a financial services company that provides a range of credit and payment solutions. It operates in a competitive landscape with other financial institutions offering similar services. On January 30, 2025, BFH reported its earnings for the fourth quarter of 2024, showcasing a mixed financial performance.
BFH reported earnings per share (EPS) of $0.41, surpassing the estimated $0.34. This represents a 24.24% surprise over the Zacks Consensus Estimate of $0.33. However, this EPS is a decline from the $0.90 reported in the same quarter the previous year. Despite the decline, the positive surprise indicates better-than-expected profitability.
The company generated revenue of $926 million, which was below the estimated $973.6 million. This revenue also marks a 9% decline compared to the same period the previous year. The revenue shortfall highlights challenges in meeting market expectations, as it fell short of the Zacks Consensus Estimate of $957.94 million by 3.33%.
BFH’s financial ratios provide further insight into its valuation and performance. The price-to-earnings (P/E) ratio is approximately 10.15, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 0.72, suggesting a relatively low valuation compared to its sales. The enterprise value to sales ratio is around 0.97, reflecting the company’s total valuation in relation to its revenue.
The company’s enterprise value to operating cash flow ratio is approximately 2.15, indicating how well BFH can generate cash from its operations. The earnings yield is about 9.85%, providing insight into the return on investment for shareholders. Additionally, the debt-to-equity ratio is approximately 1.47, highlighting the company’s financial leverage. These metrics are crucial for investors assessing BFH’s financial health and potential for future growth.
