Bread Financial Beats on Q3 EPS, Raises Dividend 9%
BFH sits 78% above its 52-week low of $59.26.
Summary
Bread Financial posted Q3 adjusted EPS of $3.84 against a $3.26 consensus, a wide beat, on revenue of $1.02 billion versus $1.01 billion expected. The credit loss provision came in at $321 million. Management also raised the quarterly common dividend 9% to $0.25 per share, a direct signal on capital return confidence. This follows the 8-K filed this morning showing $3.82 per diluted share on 5% revenue growth and a cut to the full-year net loss rate outlook, and the attached September credit update showing the monthly net principal loss rate down to 5.99%. Improving credit trends plus a dividend hike are the two things that matter for this card lender.
At the time of this announcement, BFH was trading at $105.60 on NYSE in the Finance sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $59.26 to $114.53. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.