Q3 EPS Estimates for Bread Financial Cut by Zacks Research

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) - Research analysts at Zacks Research decreased their Q3 2025 earnings estimates for Bread Financial in a research report issued on Tuesday, August 5th. Zacks Research analyst T. De now forecasts 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 issued its quarterly 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. The company had revenue of $929.00 million during the quarter, compared to analysts' expectations of $944.69 million. Bread Financial had a return on equity of 13.10% and a net margin of 6.05%. The firm's revenue was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.66 EPS.

Other analysts also recently issued reports about the stock. Barclays reaffirmed an "underweight" rating and issued a $52.00 price objective (up from $45.00) on shares of Bread Financial in a report on Tuesday, July 8th. Jefferies Financial Group boosted their target price on shares of Bread Financial from $45.00 to $50.00 and gave the company a "hold" rating in a research report on Thursday, April 24th. 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 report on Friday, July 25th. BTIG Research set a $105.00 price objective on Bread Financial and gave the company a "buy" rating in a research note on Monday, July 14th. Finally, Morgan Stanley boosted 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. Three analysts have rated the stock with a sell rating, six have assigned a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $64.42.

Bread Financial Stock Performance

NYSE:BFH traded up $0.31 during midday trading on Thursday, hitting $58.14. The company's stock had a trading volume of 461,988 shares, compared to its average volume of 708,816. Bread Financial has a fifty-two week low of $38.21 and a fifty-two week high of $66.71. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.18 and a quick ratio of 1.18. The firm has a market cap of $2.71 billion, a P/E ratio of 9.84, a P/E/G ratio of 0.93 and a beta of 1.42. The firm's 50 day moving average is $57.61 and its 200-day moving average is $54.32.

Institutional Investors Weigh In On Bread Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in BFH. O Shaughnessy Asset Management LLC lifted its holdings in Bread Financial by 2.5% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 7,248 shares of the company's stock valued at $443,000 after purchasing an additional 175 shares in the last quarter. Summit Investment Advisors Inc. lifted its stake in Bread Financial by 3.7% in the 4th quarter. Summit Investment Advisors Inc. now owns 5,202 shares of the company's stock valued at $318,000 after buying an additional 184 shares in the last quarter. Teacher Retirement System of Texas lifted its stake in Bread Financial by 2.6% in the 2nd quarter. Teacher Retirement System of Texas now owns 7,460 shares of the company's stock valued at $426,000 after buying an additional 192 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its holdings in Bread Financial by 1.7% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 11,951 shares of the company's stock worth $683,000 after buying an additional 203 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its stake in Bread Financial by 2.5% during the 2nd quarter. Envestnet Asset Management Inc. now owns 11,085 shares of the company's stock worth $633,000 after buying an additional 269 shares in the last quarter. Hedge funds and other institutional investors own 99.52% of the company's stock.

Insider Buying and Selling

In other Bread Financial news, Director John J. Fawcett bought 1,027 shares of Bread Financial stock in a transaction dated Wednesday, July 30th. The stock was acquired at an average cost of $61.79 per share, with a total value of $63,458.33. Following the purchase, the director directly owned 10,302 shares in the company, valued at $636,560.58. This represents a 11.07% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.85% of the company's stock.

Bread Financial Dividend Announcement

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

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.