Zacks Research Forecasts Higher Earnings for Bread Financial

Key Points

• Zacks Research raised its Q1 2027 EPS forecast for Bread Financial to $2.96 from $2.42 and estimates Q1 2028 EPS of $3.01; it maintains a Hold rating.
• Bread Financial’s latest quarter beat expectations, reporting EPS of $3.84 versus $3.34 and revenue of $1.02 billion versus $1.01 billion. Revenue grew 4.7% year over year.
• The company increased its quarterly dividend to $0.25 per share from $0.23, equivalent to $1.00 annually and a 1.0% yield.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Stock analysts at Zacks Research increased their Q1 2027 earnings per share estimates for shares of Bread Financial in a research note issued on Thursday, November 5th. Zacks Research analyst Team now forecasts that the company will earn $2.96 per share for the quarter, up from their previous estimate of $2.42. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $12.66 per share. Zacks Research also issued estimates for Bread Financial's Q1 2028 earnings at $3.01 EPS.

Bread Financial (NYSE:BFH - Get Free Report) last issued its earnings results on Thursday, October 22nd. The company reported $3.84 EPS for the quarter, beating the consensus estimate of $3.34 by $0.50. The business had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. Bread Financial had a return on equity of 17.24% and a net margin of 11.19%. The company's revenue was up 4.7% compared to the same quarter last year. During the same period last year, the business posted $4.02 EPS.

BFH has been the topic of a number of other research reports. Citigroup reissued a "market perform" rating on shares of Bread Financial in a report on Monday, October 26th. Morgan Stanley set a $107.00 price target on Bread Financial in a research note on Friday, July 24th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bread Financial in a research report on Thursday, October 22nd. Wall Street Zen raised shares of Bread Financial from a "hold" rating to a "buy" rating in a research report on Saturday, October 24th. Finally, Barclays lowered their price objective on shares of Bread Financial from $110.00 to $107.00 and set an "equal weight" rating on the stock in a research note on Friday, October 23rd. Eight analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $111.71.

Bread Financial Stock Up 0.1%

BFH opened at $101.95 on Monday. The stock has a market capitalization of $3.87 billion, a price-to-earnings ratio of 8.04, a PEG ratio of 0.77 and a beta of 1.26. The firm has a 50 day moving average price of $103.56 and a 200-day moving average price of $92.46. Bread Financial has a twelve month low of $59.26 and a twelve month high of $114.53. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.24.

Bread Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, November 30th. This is an increase from Bread Financial's previous quarterly dividend of $0.23. Bread Financial's payout ratio is presently 7.26%.

Insider Buying and Selling at Bread Financial

In related news, Director John Fawcett acquired 5,000 shares of the business's stock in a transaction that occurred on Wednesday, October 28th. The stock was bought at an average cost of $24.70 per share, for a total transaction of $123,500.00. Following the purchase, the director owned 5,000 shares in the company, valued at $123,500. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bread Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Bread Financial in the second quarter worth approximately $421,314,000. Hsbc Holdings PLC purchased a new stake in shares of Bread Financial in the second quarter worth $98,764,000. Bank of America Corp DE bought a new stake in shares of Bread Financial during the 2nd quarter valued at $65,806,000. Copeland Capital Management LLC bought a new stake in shares of Bread Financial during the 3rd quarter valued at $55,054,000. Finally, Empowered Funds LLC bought a new stake in shares of Bread Financial during the 2nd quarter valued at $50,051,000. Institutional investors own 99.52% of the company's stock.

About Bread Financial

Bread Financial is a consumer financial services company that works with retailers and other businesses to offer payment and lending products. Its services include private-label and co-branded credit cards, installment payment options and other financing solutions designed for purchases with participating merchants.

The company also offers deposit products through Bread Savings, including online savings accounts and certificates of deposit. Its products serve consumers primarily in the United States.

Bread Financial was previously known as Alliance Data Systems and adopted its current name in 2022.

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