Zacks Research Expects Lower Earnings for Bread Financial

Bread Financial Holdings, Inc. (NYSE:BFH) – Equities research analysts at Zacks Research lowered their Q2 2025 EPS estimates for Bread Financial in a research report issued to clients and investors on Wednesday, May 7th. Zacks Research analyst T. De now expects that the company will earn $1.63 per share for the quarter, down from their previous estimate of $1.73. The consensus estimate for Bread Financial’s current full-year earnings is $6.45 per share. Zacks Research also issued estimates for Bread Financial’s Q3 2025 earnings at $2.14 EPS, Q2 2026 earnings at $2.05 EPS and Q3 2026 earnings at $1.93 EPS.

Bread Financial (NYSE:BFH) last posted its quarterly earnings data on Thursday, April 24th. The company reported $2.86 earnings per share for the quarter, topping analysts’ consensus estimates of $2.10 by $0.76. Bread Financial had a return on equity of 12.41% and a net margin of 5.75%. The company had revenue of $970.00 million during the quarter, compared to analysts’ expectations of $956.17 million. During the same period last year, the firm earned $2.73 EPS. The firm’s revenue for the quarter was down 2.1% on a year-over-year basis.

Several other equities analysts have also recently issued reports on BFH. Royal Bank of Canada boosted their price objective on shares of Bread Financial from $62.00 to $68.00 and gave the company a “sector perform” rating in a research note on Friday, January 31st. Jefferies Financial Group boosted their price target on shares of Bread Financial from $45.00 to $50.00 and gave the stock a “hold” rating in a research note on Thursday, April 24th. JMP Securities restated a “market perform” rating on shares of Bread Financial in a research report on Monday, April 28th. Morgan Stanley set a $36.00 target price on Bread Financial and gave the stock an “underweight” rating in a research report on Thursday, April 24th. Finally, The Goldman Sachs Group reduced their price target on Bread Financial from $68.00 to $58.00 and set a “sell” rating for the company in a report on Tuesday, March 18th. Three research analysts have rated the stock with a sell rating, seven have issued a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $60.00.

Bread Financial Price Performance

Bread Financial stock opened at $50.49 on Friday. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.15 and a quick ratio of 1.15. The business has a 50 day simple moving average of $47.99 and a 200-day simple moving average of $55.55. Bread Financial has a 12 month low of $38.21 and a 12 month high of $66.71. The stock has a market capitalization of $2.35 billion, a PE ratio of 9.10, a price-to-earnings-growth ratio of 1.25 and a beta of 1.33.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in BFH. Curat Global LLC purchased a new stake in shares of Bread Financial in the 1st quarter worth about $28,000. Picton Mahoney Asset Management raised its stake in Bread Financial by 2,083.3% in the 4th quarter. Picton Mahoney Asset Management now owns 524 shares of the company’s stock valued at $32,000 after purchasing an additional 500 shares during the last quarter. Pinnacle Holdings LLC acquired a new position in Bread Financial in the 4th quarter valued at about $46,000. Versant Capital Management Inc lifted its holdings in Bread Financial by 182.8% in the 1st quarter. Versant Capital Management Inc now owns 1,298 shares of the company’s stock valued at $65,000 after purchasing an additional 839 shares in the last quarter. Finally, GAMMA Investing LLC boosted its stake in shares of Bread Financial by 28.0% during the 1st quarter. GAMMA Investing LLC now owns 1,457 shares of the company’s stock worth $73,000 after purchasing an additional 319 shares during the last quarter. Hedge funds and other institutional investors own 99.52% of the company’s stock.

Bread Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 13th. Shareholders of record on Friday, May 9th will be given a dividend of $0.21 per share. The ex-dividend date is Friday, May 9th. This represents a $0.84 dividend on an annualized basis and a yield of 1.66%. Bread Financial’s payout ratio is 14.92%.

Bread Financial declared that its board has authorized a share repurchase plan on Wednesday, March 5th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the company to reacquire up to 6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

About Bread Financial

Bread Financial Holdings, Inc provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit.