Q1 EPS Estimates for Bread Financial Cut by Zacks Research

Key Points

• Zacks Research slightly lowered Bread Financial’s Q1 2027 EPS estimate to $2.49 from $2.50, while keeping a Strong-Buy rating on the stock.
• Bread Financial recently beat Q1 earnings expectations, reporting $4.18 EPS versus the $3.00 consensus and revenue of $1.02 billion, up 4.9% year over year.
• The company continues to return capital to shareholders with a $600 million share repurchase authorization and a quarterly dividend of $0.23 per share, yielding about 1.1%.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Research analysts at Zacks Research cut their Q1 2027 earnings per share estimates for Bread Financial in a research report issued to clients and investors on Wednesday, May 13th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $2.49 for the quarter, down from their previous forecast of $2.50. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $10.59 per share. Zacks Research also issued estimates for Bread Financial's FY2028 earnings at $12.04 EPS.

Other analysts have also recently issued reports about the stock. BTIG Research increased their price objective on shares of Bread Financial from $98.00 to $105.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Weiss Ratings upgraded shares of Bread Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, April 27th. Morgan Stanley set a $98.00 target price on shares of Bread Financial in a report on Friday, April 24th. Bank of America set a $92.00 price target on Bread Financial and gave the company an "overweight" rating in a report on Wednesday, March 11th. Finally, TD Cowen boosted their price objective on Bread Financial from $80.00 to $95.00 and gave the company a "hold" rating in a research report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $93.36.

Bread Financial Price Performance

Shares of NYSE:BFH opened at $86.73 on Friday. The company has a market capitalization of $3.50 billion, a P/E ratio of 7.10, a P/E/G ratio of 0.79 and a beta of 1.12. Bread Financial has a 1-year low of $49.17 and a 1-year high of $99.13. The firm's 50 day simple moving average is $79.60 and its two-hundred day simple moving average is $74.18. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.15 and a quick ratio of 1.15.

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

Bread Financial declared that its board has authorized a share repurchase plan on Thursday, February 26th that allows the company to repurchase $600.00 million in shares. This repurchase authorization allows the company to purchase up to 19% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its stock is undervalued.

Bread Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be issued a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, May 29th. Bread Financial's payout ratio is 7.53%.

Insider Buying and Selling at Bread Financial

In related news, Director Roger H. Ballou sold 9,687 shares of the company's stock in a transaction on Friday, April 24th. The shares were 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 in the company, valued at approximately $2,716,735.28. This represents a 24.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.30% of the company's stock.

Institutional Trading of Bread Financial

Several hedge funds have recently bought and sold shares of the stock. Millennium Management LLC grew its position in shares of Bread Financial by 223.4% during the fourth quarter. Millennium Management LLC now owns 665,812 shares of the company's stock valued at $49,290,000 after purchasing an additional 459,916 shares in the last quarter. Bank of America Corp DE boosted its stake in Bread Financial by 241.1% during the second quarter. Bank of America Corp DE now owns 537,656 shares of the company's stock valued at $30,711,000 after buying an additional 380,039 shares during the last quarter. 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 last quarter. UBS Group AG increased its stake in Bread Financial by 100.4% in the 4th quarter. UBS Group AG now owns 716,725 shares of the company's stock worth $53,059,000 after acquiring an additional 359,088 shares during the last quarter. Finally, SG Americas Securities LLC raised its holdings in shares of Bread Financial by 899.4% during the 1st quarter. SG Americas Securities LLC now owns 350,061 shares of the company's stock worth $26,216,000 after acquiring an additional 315,034 shares in the last quarter. Hedge funds and other institutional investors own 99.52% of the company's stock.

About Bread Financial

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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