FY2027 EPS Estimates for Bread Financial Reduced by Analyst

Key Points

• Zacks Research slightly lowered its FY2027 EPS estimate for Bread Financial to $11.10 from $11.12, while still maintaining a Strong-Buy rating on the stock.
• Analyst sentiment remains broadly positive, with Bread Financial holding an average Moderate Buy rating and a consensus price target of $98.67, despite a mix of buy, hold, and sell calls.
• The company recently beat quarterly expectations, posting $4.18 EPS versus the $3.00 estimate and revenue of $1.02 billion, while also declaring a quarterly dividend of $0.23 per share.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Investment analysts at Zacks Research reduced their FY2027 EPS estimates for shares of Bread Financial in a research report issued to clients and investors on Tuesday, June 30th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $11.10 for the year, down from their previous estimate of $11.12. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $10.62 per share. Zacks Research also issued estimates for Bread Financial's Q1 2028 earnings at $2.84 EPS.

A number of other equities analysts also recently commented on the company. Wolfe Research restated a "positive" rating on shares of Bread Financial in a report on Wednesday, June 10th. Barclays lifted their price target on shares of Bread Financial from $67.00 to $70.00 and gave the company an "underweight" rating in a report on Friday, April 24th. Morgan Stanley set a $98.00 price objective on shares of Bread Financial in a research report on Friday, April 24th. Wall Street Zen upgraded shares of Bread Financial from a "hold" rating to a "buy" rating in a report on Saturday, June 13th. Finally, TD Cowen raised their target price on shares of Bread Financial from $80.00 to $95.00 and gave the stock a "hold" rating in a research report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Bread Financial currently has an average rating of "Moderate Buy" and an average target price of $98.67.

Bread Financial Price Performance

BFH stock opened at $108.49 on Wednesday. The firm's 50-day moving average price is $92.69 and its two-hundred day moving average price is $81.10. Bread Financial has a 12-month low of $53.83 and a 12-month high of $109.91. The stock has a market capitalization of $4.38 billion, a price-to-earnings ratio of 8.89, a PEG ratio of 0.99 and a beta of 1.12. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.25.

Bread Financial (NYSE:BFH - Get Free Report) last issued its earnings results on Thursday, April 23rd. The company reported $4.18 earnings per share for the quarter, beating the consensus estimate of $3.00 by $1.18. The company had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $992.05 million. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.Bread Financial's quarterly revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the business posted $2.86 EPS.

Bread Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 29th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, May 29th. Bread Financial's payout ratio is 7.53%.

Insider Transactions at Bread Financial

In other news, Director John J. Fawcett purchased 698 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The shares were bought at an average price of $86.43 per share, for a total transaction of $60,328.14. Following the purchase, the director directly owned 11,000 shares in the company, valued at approximately $950,730. This trade represents a 6.78% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Roger H. Ballou sold 9,687 shares of the business's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $90.32, for a total transaction of $874,929.84. Following the completion of the transaction, the director owned 30,079 shares of the company's stock, valued at approximately $2,716,735.28. The trade was a 24.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On Bread Financial

A number of large investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its stake in shares of Bread Financial by 0.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,086,060 shares of the company's stock worth $231,111,000 after acquiring an additional 9,854 shares during the last quarter. Franklin Resources Inc. increased its stake in shares of Bread Financial by 17.3% in the 4th quarter. Franklin Resources Inc. now owns 2,029,894 shares of the company's stock worth $150,273,000 after purchasing an additional 299,439 shares in the last quarter. American Century Companies Inc. raised its holdings in Bread Financial by 4.4% in the 3rd quarter. American Century Companies Inc. now owns 1,555,968 shares of the company's stock worth $86,776,000 after purchasing an additional 65,223 shares during the period. Geode Capital Management LLC raised its holdings in Bread Financial by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 1,159,731 shares of the company's stock worth $85,866,000 after purchasing an additional 14,257 shares during the period. Finally, Allianz Asset Management GmbH lifted its position in Bread Financial by 21.6% during the fourth quarter. Allianz Asset Management GmbH now owns 1,147,366 shares of the company's stock valued at $84,940,000 after purchasing an additional 203,707 shares in the last quarter. Institutional investors own 99.52% of the company's stock.

Bread Financial Company Profile

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.

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