Bread Financial (NYSE:BFH) Issues Earnings Results

Key Points

• Bread Financial reported a quarterly EPS of $3.14, significantly exceeding analysts' expectations of $1.85, although revenue fell short at $929 million compared to the estimated $944.69 million.
• The company declared a quarterly dividend of $0.21 per share, scheduled for payment on September 12th, reflecting an annualized yield of 1.33%.
• Analyst ratings for Bread Financial show a mix of opinions: three sell ratings, six hold ratings, four buy ratings, and one strong buy, with an average target price of $64.42.

Bread Financial (NYSE:BFH - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $3.14 EPS for the quarter, topping analysts' consensus estimates of $1.85 by $1.29, Zacks reports. The business had revenue of $929.00 million during the quarter, compared to the consensus estimate of $944.69 million. Bread Financial had a net margin of 6.05% and a return on equity of 13.10%. The company's quarterly revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.66 earnings per share. Bread Financial updated its FY 2025 guidance to EPS.

Bread Financial Price Performance

Shares of NYSE BFH traded up $2.32 during midday trading on Friday, reaching $63.32. 1,085,395 shares of the company traded hands, compared to its average volume of 647,762. The firm has a market cap of $2.95 billion, a PE ratio of 10.71, a PEG ratio of 1.14 and a beta of 1.38. The stock's 50-day simple moving average is $55.95 and its 200-day simple moving average is $54.33. Bread Financial has a 12 month low of $38.21 and a 12 month high of $66.71. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.17 and a current ratio of 1.18.

Bread Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Shareholders of record on Friday, August 8th will be issued a dividend of $0.21 per share. The ex-dividend date of this dividend is Friday, August 8th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 1.33%. Bread Financial's payout ratio is presently 14.21%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on BFH. Royal Bank Of Canada boosted their price objective on shares of Bread Financial from $65.00 to $74.00 and gave the stock a "sector perform" rating in a research note on Friday. Jefferies Financial Group increased their target price on shares of Bread Financial from $45.00 to $50.00 and gave the company a "hold" rating in a research report on Thursday, April 24th. BTIG Research set a $105.00 price target on shares of Bread Financial and gave the company a "buy" rating in a report on Monday, July 14th. Morgan Stanley upped their price objective on shares of Bread Financial from $36.00 to $39.00 and gave the company an "underweight" rating in a research note on Monday, May 12th. Finally, JMP Securities restated a "market perform" rating on shares of Bread Financial in a report on Monday, April 28th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $64.42.

Institutional Investors Weigh In On Bread Financial

A number of hedge funds have recently added to or reduced their stakes in BFH. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Bread Financial by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,589 shares of the company's stock worth $1,482,000 after acquiring an additional 1,286 shares during the last quarter. Millennium Management LLC raised its stake in shares of Bread Financial by 46.5% in the first quarter. Millennium Management LLC now owns 345,902 shares of the company's stock worth $17,323,000 after acquiring an additional 109,864 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Bread Financial by 104.8% in the first quarter. Goldman Sachs Group Inc. now owns 736,604 shares of the company's stock worth $36,889,000 after acquiring an additional 376,920 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Bread Financial by 3.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,833 shares of the company's stock worth $7,904,000 after acquiring an additional 4,624 shares during the last quarter. Finally, Strs Ohio bought a new position in shares of Bread Financial in the first quarter worth about $65,000. Institutional investors own 99.52% of the company's stock.

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.

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