Zacks Research Cuts Earnings Estimates for Bread Financial

Key Points

• Zacks Research trimmed its Q4 2026 EPS estimate for Bread Financial to $0.86 from $0.88, while still keeping a Strong-Buy rating on the stock. The consensus full-year earnings estimate remains $10.65 per share.
• Bread Financial recently posted strong quarterly results, reporting $4.18 EPS versus the $3.00 consensus and revenue of $1.02 billion versus expectations of $992.05 million. Revenue rose 4.9% year over year.
• Analyst sentiment is generally positive, with Bread Financial holding an average rating of Moderate Buy and a consensus price target of $96.42. The stock was trading near its 52-week high, supported by a $600 million share buyback authorization and a recent quarterly dividend.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Zacks Research cut their Q4 2026 earnings per share estimates for shares of Bread Financial in a report issued on Friday, June 12th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.86 for the quarter, down from their previous forecast of $0.88. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $10.65 per share. Zacks Research also issued estimates for Bread Financial's Q3 2027 earnings at $3.97 EPS.

Bread Financial (NYSE:BFH - Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The company reported $4.18 EPS for the quarter, topping the consensus estimate of $3.00 by $1.18. The company had revenue of $1.02 billion for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period last year, the business posted $2.86 EPS.

A number of other brokerages also recently issued reports on BFH. Keefe, Bruyette & Woods reiterated an "outperform" rating on shares of Bread Financial in a report on Wednesday. Bank of America reiterated a "buy" rating and issued a $108.00 price target on shares of Bread Financial in a report on Wednesday. Wall Street Zen upgraded Bread Financial from a "hold" rating to a "buy" rating in a report on Saturday. Loop Capital initiated coverage on Bread Financial in a report on Thursday, May 21st. They issued a "buy" rating and a $104.00 price target on the stock. Finally, TD Cowen lifted their price target on Bread Financial from $80.00 to $95.00 and gave the company a "hold" rating in a report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $96.42.

Bread Financial Trading Down 0.1%

BFH opened at $101.62 on Monday. The stock's fifty day moving average is $86.76 and its two-hundred day moving average is $78.22. The company has a market capitalization of $4.11 billion, a P/E ratio of 8.32, a PEG ratio of 0.88 and a beta of 1.12. Bread Financial has a 52 week low of $50.63 and a 52 week high of $103.12. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.25.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Kemnay Advisory Services Inc. purchased a new position in Bread Financial during the 4th quarter worth $28,000. Cullen Frost Bankers Inc. purchased a new position in Bread Financial during the 4th quarter worth $29,000. Northwestern Mutual Wealth Management Co. grew its stake in Bread Financial by 141.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company's stock worth $31,000 after buying an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Bread Financial by 127.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company's stock worth $41,000 after buying an additional 398 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its stake in Bread Financial by 8,300.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company's stock worth $47,000 after buying an additional 830 shares during the last quarter. 99.52% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Bread Financial news, Director John J. Fawcett bought 698 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The shares were purchased at an average cost 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 $950,730. This represents a 6.78% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Ralph J. Andretta sold 15,000 shares of the business's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $89.10, for a total value of $1,336,500.00. Following the transaction, the chief executive officer owned 582,241 shares in the company, valued at approximately $51,877,673.10. This trade represents a 2.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is owned by company insiders.

Bread Financial declared that its Board of Directors has authorized a stock buyback program on Thursday, February 26th that allows the company to buyback $600.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 19% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Bread Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be given a $0.23 dividend. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.9%. Bread Financial's dividend payout ratio (DPR) is presently 7.53%.

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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