Zacks Research Lowers Earnings Estimates for Bread Financial

Key Points

• Zacks Research has revised down its Q3 2025 earnings per share (EPS) estimate for Bread Financial from $2.14 to $1.87, potentially affecting investor sentiment.
• Multiple analysts maintain mixed ratings on Bread Financial, ranging from "buy" to "underweight," with a consensus price target of $64.42.
• The company is set to pay a quarterly dividend of $0.21 per share, with a dividend yield of 1.4%, demonstrating its commitment to returning value to shareholders.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Equities research analysts at Zacks Research lowered their Q3 2025 EPS estimates for Bread Financial in a report released on Tuesday, August 5th. Zacks Research analyst T. De now expects that the company will post earnings of $1.87 per share for the quarter, down from their prior forecast of $2.14. The consensus estimate for Bread Financial's current full-year earnings is $6.45 per share. Zacks Research also issued estimates for Bread Financial's Q1 2026 earnings at $2.67 EPS, Q3 2026 earnings at $1.82 EPS, Q4 2026 earnings at $1.83 EPS, Q1 2027 earnings at $2.19 EPS, Q2 2027 earnings at $2.54 EPS and FY2027 earnings at $9.60 EPS.

Bread Financial (NYSE:BFH - Get Free Report) last released its quarterly earnings results on Thursday, July 24th. The company reported $3.14 EPS for the quarter, beating the consensus estimate of $1.85 by $1.29. The business had revenue of $929.00 million during the quarter, compared to analyst estimates of $944.69 million. Bread Financial had a net margin of 6.05% and a return on equity of 13.10%. The company's quarterly revenue was down 1.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.66 earnings per share.

Other research analysts have also issued research reports about the company. BTIG Research set a $105.00 target price on Bread Financial and gave the company a "buy" rating in a research report on Monday, July 14th. JMP Securities reiterated a "market perform" rating on shares of Bread Financial in a research report on Monday, April 28th. Morgan Stanley raised their price objective on Bread Financial from $36.00 to $39.00 and gave the company an "underweight" rating in a report on Monday, May 12th. Wall Street Zen lowered Bread Financial from a "strong-buy" rating to a "buy" rating in a report on Saturday. Finally, Barclays restated an "underweight" rating and issued a $52.00 price objective (up previously from $45.00) on shares of Bread Financial in a report on Tuesday, July 8th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, Bread Financial has an average rating of "Hold" and an average target price of $64.42.

Bread Financial Stock Performance

Shares of NYSE BFH traded down $0.11 during midday trading on Thursday, reaching $58.11. 91,902 shares of the stock were exchanged, compared to its average volume of 844,162. The firm has a market cap of $2.71 billion, a price-to-earnings ratio of 9.83, a PEG ratio of 0.93 and a beta of 1.42. Bread Financial has a twelve month low of $38.21 and a twelve month high of $66.71. The firm has a 50-day simple moving average of $57.61 and a two-hundred day simple moving average of $54.17. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 0.36.

Institutional Trading of Bread Financial

Several hedge funds have recently made changes to their positions in the stock. Curat Global LLC acquired a new position in shares of Bread Financial in the 1st quarter worth $28,000. Quarry LP increased its stake in Bread Financial by 947.5% during the first quarter. Quarry LP now owns 639 shares of the company's stock valued at $32,000 after acquiring an additional 578 shares during the period. BOK Financial Private Wealth Inc. bought a new position in Bread Financial during the second quarter valued at about $42,000. Pinnacle Holdings LLC bought a new stake in shares of Bread Financial in the 4th quarter valued at approximately $46,000. Finally, Versant Capital Management Inc grew its position in Bread Financial by 182.8% during the 1st quarter. Versant Capital Management Inc now owns 1,298 shares of the company's stock worth $65,000 after acquiring an additional 839 shares during the last quarter. Institutional investors own 99.52% of the company's stock.

Insider Activity at Bread Financial

In related news, Director John J. Fawcett bought 1,027 shares of the company's stock in a transaction that occurred on Wednesday, July 30th. The shares were acquired at an average cost of $61.79 per share, for a total transaction of $63,458.33. Following the acquisition, the director owned 10,302 shares in the company, valued at $636,560.58. This represents a 11.07% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.85% of the company's stock.

Bread Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 8th will be issued a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, August 8th. Bread Financial's dividend payout ratio (DPR) is presently 14.21%.

Bread Financial Company Profile

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.