Zacks Research Forecasts Higher Earnings for Bread Financial

Key Points

• Zacks Research slightly raised Bread Financial’s Q3 2026 EPS estimate to $2.96 from $2.95 and kept a Strong-Buy rating on the stock.
• Bread Financial’s latest quarter beat expectations, reporting $4.18 EPS versus the $3.00 consensus and revenue of $1.02 billion, up 4.9% year over year.
• Analyst sentiment remains positive overall, with the stock holding a Moderate Buy consensus and an average price target of $96.42, while the company has also authorized a $600 million share buyback.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Investment analysts at Zacks Research boosted their Q3 2026 earnings per share (EPS) estimates for Bread Financial in a report released on Friday, June 12th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $2.96 for the quarter, up from their prior forecast of $2.95. Zacks Research currently 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 FY2028 earnings at $12.06 EPS.

Bread Financial (NYSE:BFH - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The company reported $4.18 EPS for the quarter, topping 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 firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $992.05 million. During the same period last year, the company earned $2.86 earnings per share. The business's revenue for the quarter was up 4.9% on a year-over-year basis.

BFH has been the topic of a number of other research reports. Wall Street Zen upgraded Bread Financial from a "hold" rating to a "buy" rating in a research report on Saturday. Bank of America reiterated a "buy" rating and issued a $108.00 price objective on shares of Bread Financial in a research report on Wednesday, June 10th. BTIG Research increased their price objective on Bread Financial from $98.00 to $105.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. Royal Bank Of Canada increased their price objective on Bread Financial from $105.00 to $115.00 and gave the stock a "sector perform" rating in a research report on Friday. Finally, Loop Capital initiated coverage on Bread Financial in a research report on Thursday, May 21st. They issued a "buy" rating and a $104.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Bread Financial currently has an average rating of "Moderate Buy" and an average price target of $96.42.

Bread Financial Price Performance

Bread Financial stock opened at $102.36 on Tuesday. Bread Financial has a one year low of $50.88 and a one year high of $105.20. The business has a fifty day moving average price of $87.34 and a 200-day moving average price of $78.47. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.15 and a quick ratio of 1.15. The firm has a market capitalization of $4.14 billion, a P/E ratio of 8.38, a PEG ratio of 0.88 and a beta of 1.12.

Institutional Investors Weigh In On Bread Financial

A number of large investors have recently added to or reduced their stakes in BFH. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Bread Financial by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,589 shares of the company's stock valued at $1,482,000 after purchasing an additional 1,286 shares in the last quarter. Millennium Management LLC raised its position in Bread Financial by 46.5% during the first quarter. Millennium Management LLC now owns 345,902 shares of the company's stock valued at $17,323,000 after purchasing an additional 109,864 shares in the last quarter. Goldman Sachs Group Inc. raised its position 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 purchasing an additional 376,920 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Bread Financial by 3.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,833 shares of the company's stock valued at $7,904,000 after purchasing an additional 4,624 shares in the last quarter. Finally, Strs Ohio purchased a new position in shares of Bread Financial in the first quarter worth about $65,000. Hedge funds and other institutional investors own 99.52% of the company's stock.

Insider Buying and Selling at Bread Financial

In other Bread Financial news, Director Roger H. Ballou sold 9,687 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $90.32, for a total transaction of $874,929.84. Following the sale, the director owned 30,079 shares in the company, valued at $2,716,735.28. This trade represents a 24.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Ralph J. Andretta sold 15,000 shares of the firm's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $89.10, for a total value of $1,336,500.00. Following the sale, the chief executive officer owned 582,241 shares in the company, valued at $51,877,673.10. The trade was a 2.51% decrease in their position. 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. Company insiders own 1.30% of the company's stock.

Bread Financial Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, May 29th were given a dividend of $0.23 per share. The ex-dividend date was Friday, May 29th. This represents a $0.92 dividend on an annualized basis and a yield of 0.9%. Bread Financial's dividend payout ratio (DPR) is presently 7.53%.

Bread Financial declared that its board has approved a stock buyback program on Thursday, February 26th that authorizes the company to repurchase $600.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 19% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

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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