Zacks Research Lowers Earnings Estimates for Bread Financial

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Bread Financial to $2.37 from $2.48 but maintained a "Strong-Buy" rating; the consensus full-year EPS is $10.43 and Zacks projects FY2027 EPS of $11.12.
• Bread Financial beat quarterly expectations with $4.18 EPS (vs. $3.00 est.) and $1.02B revenue, and its board authorized a $600 million share buyback (about 19% of shares) while declaring a $0.23 quarterly dividend (1.1% yield).

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Analysts at Zacks Research dropped their Q2 2026 earnings per share estimates for shares of Bread Financial in a research note issued to investors on Tuesday, May 5th. Zacks Research analyst Team now anticipates that the company will earn $2.37 per share for the quarter, down from their prior estimate of $2.48. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $10.43 per share. Zacks Research also issued estimates for Bread Financial's Q3 2026 earnings at $2.95 EPS, Q4 2026 earnings at $0.88 EPS, Q1 2027 earnings at $2.50 EPS, Q3 2027 earnings at $3.96 EPS and FY2027 earnings at $11.12 EPS.

Several other research analysts have also issued reports on the company. TD Cowen increased their target price on Bread Financial from $80.00 to $95.00 and gave the stock a "hold" rating in a research report on Friday, April 24th. Royal Bank Of Canada set a $105.00 price target on Bread Financial in a research report on Friday, April 24th. Bank of America set a $92.00 price target on Bread Financial and gave the stock an "overweight" rating in a research note on Wednesday, March 11th. Evercore reissued an "outperform" rating and set a $99.00 price objective on shares of Bread Financial in a research report on Wednesday, April 29th. Finally, UBS Group started coverage on shares of Bread Financial in a report on Thursday, January 8th. They set a "buy" rating and a $92.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $93.36.

Bread Financial Stock Performance

Shares of BFH stock opened at $85.10 on Wednesday. The firm has a market capitalization of $3.44 billion, a price-to-earnings ratio of 6.97, a PEG ratio of 1.16 and a beta of 1.12. The stock has a fifty day moving average of $77.77 and a 200 day moving average of $72.97. Bread Financial has a 52 week low of $47.87 and a 52 week high of $99.13. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.25.

Bread Financial (NYSE:BFH - Get Free Report) last issued its earnings results 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 net margin of 11.90% and a return on equity of 18.79%. The firm's revenue for the quarter was up 4.9% on a year-over-year basis. During the same period in the previous year, the firm earned $2.86 earnings per share.

Bread Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be paid a $0.23 dividend. The ex-dividend date is Friday, May 29th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.1%. Bread Financial's payout ratio is currently 7.53%.

Bread Financial announced that its Board of Directors has initiated a share repurchase plan on Thursday, February 26th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the company to repurchase up to 19% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Bread Financial

In other Bread Financial news, Director Roger H. Ballou sold 9,687 shares of Bread Financial stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $90.32, for a total value of $874,929.84. Following the completion of the sale, the director owned 30,079 shares of the company's stock, valued at approximately $2,716,735.28. The trade was a 24.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 1.30% of the stock is owned by insiders.

Institutional Trading of Bread Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of BFH. Kemnay Advisory Services Inc. purchased a new stake in Bread Financial in the 4th quarter worth $28,000. Cullen Frost Bankers Inc. bought a new position in shares of Bread Financial in the fourth quarter worth about $29,000. Northwestern Mutual Wealth Management Co. grew its position in shares of Bread Financial by 141.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company's stock worth $31,000 after purchasing an additional 329 shares in the last quarter. EverSource Wealth Advisors LLC raised 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 valued at $41,000 after purchasing an additional 398 shares during the period. Finally, First Horizon Corp bought a new stake in Bread Financial during the 4th quarter valued at approximately $56,000. Hedge funds and other institutional investors own 99.52% of the company's stock.

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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