Q3 EPS Estimate for Bread Financial Boosted by Analyst

Key Points

• Analysts at Seaport Res Ptn have raised their Q3 2025 earnings per share estimate for Bread Financial to $2.23, reflecting an increase from the previous estimate of $2.21.
• Bread Financial reported a Q2 EPS of $3.14, significantly exceeding consensus estimates of $1.85, though revenue fell 1.1% year-over-year.
• The company recently approved a quarterly dividend of $0.21 per share, representing an annual yield of 1.4%, while also announcing a stock buyback program, indicating management's belief in the stock's undervaluation.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Equities research analysts at Seaport Res Ptn boosted their Q3 2025 earnings per share estimates for shares of Bread Financial in a report released on Monday, September 29th. Seaport Res Ptn analyst W. Ryan now anticipates that the company will post earnings per share of $2.23 for the quarter, up from their prior estimate of $2.21. The consensus estimate for Bread Financial's current full-year earnings is $6.45 per share.

Bread Financial (NYSE:BFH - Get Free Report) last announced its earnings results on Thursday, July 24th. The company reported $3.14 EPS for the quarter, topping analysts' consensus estimates of $1.85 by $1.29. Bread Financial had a return on equity of 13.10% and a net margin of 6.05%.The company had revenue of $929.00 million for the quarter, compared to analysts' expectations of $944.69 million. During the same period last year, the firm earned $2.66 EPS. Bread Financial's revenue for the quarter was down 1.1% compared to the same quarter last year. Bread Financial has set its FY 2025 guidance at EPS.

Other equities research analysts have also issued research reports about the company. Wall Street Zen lowered Bread Financial from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 9th. Barclays reiterated an "underweight" rating and issued a $52.00 price target (up previously from $45.00) on shares of Bread Financial in a research note on Tuesday, July 8th. BTIG Research set a $105.00 price target on Bread Financial and gave the stock a "buy" rating in a research note on Monday, July 14th. Royal Bank Of Canada increased their price target on Bread Financial from $65.00 to $74.00 and gave the stock a "sector perform" rating in a research note on Friday, July 25th. Finally, Morgan Stanley increased their price target on Bread Financial from $51.00 to $53.00 and gave the stock an "underweight" rating in a research note on Monday. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $67.10.

Bread Financial Trading Down 2.7%

Shares of BFH stock opened at $57.98 on Tuesday. Bread Financial has a 52-week low of $38.21 and a 52-week high of $68.01. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.18 and a current ratio of 1.18. The firm has a market capitalization of $2.70 billion, a PE ratio of 9.81, a PEG ratio of 0.54 and a beta of 1.46. The stock has a fifty day simple moving average of $62.20 and a two-hundred day simple moving average of $55.53.

Bread Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 12th. Stockholders of record on Friday, August 8th were given a dividend of $0.21 per share. The ex-dividend date was Friday, August 8th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 1.4%. Bread Financial's dividend payout ratio (DPR) is presently 14.21%.

Bread Financial declared that its board has approved a stock buyback program on Wednesday, August 27th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at Bread Financial

In other news, Director John J. Fawcett acquired 1,027 shares of the business's stock in a transaction dated Wednesday, July 30th. The stock was purchased at an average price of $61.79 per share, for a total transaction of $63,458.33. Following the completion of the transaction, the director directly owned 10,302 shares in the company, valued at approximately $636,560.58. This trade represents a 11.07% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.62% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC purchased a new position in Bread Financial in the second quarter worth about $220,000. Texas Permanent School Fund Corp grew its position in Bread Financial by 27.7% in the second quarter. Texas Permanent School Fund Corp now owns 35,155 shares of the company's stock worth $2,008,000 after acquiring an additional 7,619 shares in the last quarter. Public Sector Pension Investment Board grew its position in Bread Financial by 0.7% in the second quarter. Public Sector Pension Investment Board now owns 186,284 shares of the company's stock worth $10,641,000 after acquiring an additional 1,294 shares in the last quarter. Headlands Technologies LLC purchased a new position in Bread Financial in the second quarter worth about $184,000. Finally, Tower Research Capital LLC TRC grew its position in Bread Financial by 373.9% in the second quarter. Tower Research Capital LLC TRC now owns 6,554 shares of the company's stock worth $374,000 after acquiring an additional 5,171 shares in the last quarter. Hedge funds and other 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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