Alliance Data Systems(BFH) ZACKS·2024-10-25 18:06Core Insights - Bread Financial Holdings (BFH) reported an operating income of 1.88, with a significant year-over-year decline of 88% [1] - The company's revenues decreased by 4.7% year-over-year to 6.5 billion, down 3% year-over-year, reflecting moderated consumer spending and strategic credit tightening [2] - Average loans increased by 1% to 574 million, driven by increased employee compensation and other expenses [2] Financial Performance - The delinquency rate increased to 6.4%, worsening by 10 basis points year-over-year, while the net loss rate rose to 7.8%, deteriorating by 90 basis points [3] - Pre-tax pre-provision earnings decreased by 22.7% year-over-year to 3.5 billion, up 33.3% from the previous year, while long-term debt declined by 25.3% to 47.48 per share, but return on average equity contracted to 0.4%, down 2440 basis points year-over-year [4] Capital Deployment - The board approved a quarterly dividend of 21 cents, payable on December 13 to stockholders of record as of November 8, and the company repurchased shares worth $11 million [5] 2024 Guidance - Management anticipates average receivables to decline in the low single-digit range from 2023 levels, with expectations for average credit card and other loans to also decrease in low single digits [6] - Total revenues are projected to decline in low-to-mid single digits, with total non-interest expenses expected to follow a similar trend [7] - The net loss rate is guided to be in the low 8% range [7] Zacks Rank - Bread Financial currently holds a Zacks Rank 3 (Hold) [8]