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) announced its earnings results on Thursday. The company reported $3.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.85 by $1.29, Zacks reports. The firm had revenue of $929.00 million during the quarter, compared to analysts' expectations of $944.69 million. Bread Financial had a return on equity of 13.10% and a net margin of 6.05%. The company's revenue was down 1.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.66 earnings per share. Bread Financial updated its FY 2025 guidance to EPS.

Bread Financial Trading Down 1.6%

Shares of Bread Financial stock traded down $0.99 on Wednesday, hitting $61.79. 842,761 shares of the company's stock traded hands, compared to its average volume of 663,003. Bread Financial has a one year low of $38.21 and a one year high of $66.71. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.18 and a quick ratio of 1.17. The company has a fifty day moving average of $56.36 and a two-hundred day moving average of $54.36. The company has a market capitalization of $2.88 billion, a price-to-earnings ratio of 7.61, a price-to-earnings-growth ratio of 1.07 and a beta of 1.38.

Bread Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 8th will be given a dividend of $0.21 per share. The ex-dividend date of this dividend is Friday, August 8th. This represents a $0.84 annualized dividend and a dividend yield of 1.36%. Bread Financial's payout ratio is 14.21%.

Wall Street Analyst Weigh In

BFH has been the topic of a number of recent analyst reports. Royal Bank Of Canada raised their target price on Bread Financial from $65.00 to $74.00 and gave the stock a "sector perform" rating in a report on Friday, July 25th. JMP Securities reiterated a "market perform" rating on shares of Bread Financial in a research note on Monday, April 28th. Jefferies Financial Group boosted their price target on Bread Financial from $45.00 to $50.00 and gave the company a "hold" rating in a research note on Thursday, April 24th. Barclays restated an "underweight" rating and issued a $52.00 price target (up from $45.00) on shares of Bread Financial in a research note on Tuesday, July 8th. Finally, BTIG Research set a $105.00 price objective on Bread Financial and gave the company a "buy" rating in a report on Monday, July 14th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, Bread Financial has an average rating of "Hold" and a consensus price target of $64.42.

Institutional Investors Weigh In On Bread Financial

Several institutional investors and hedge funds have recently made changes to their positions in BFH. Strs Ohio bought a new position in Bread Financial during the first quarter valued at $65,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings 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 period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Bread Financial by 3.0% during 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 valued at $7,904,000 after buying an additional 4,624 shares during the period. Millennium Management LLC boosted its stake in Bread Financial by 46.5% during the first quarter. Millennium Management LLC now owns 345,902 shares of the company's stock valued at $17,323,000 after buying an additional 109,864 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in Bread Financial by 104.8% during the first quarter. Goldman Sachs Group Inc. now owns 736,604 shares of the company's stock valued at $36,889,000 after buying an additional 376,920 shares during the period. 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.