Zacks Research Comments on Bread Financial FY2025 Earnings

Bread Financial Holdings, Inc. (NYSE:BFH) – Stock analysts at Zacks Research increased their FY2025 earnings per share (EPS) estimates for shares of Bread Financial in a research report issued to clients and investors on Tuesday, November 4th. Zacks Research analyst Team now forecasts that the company will earn $10.23 per share for the year, up from their previous forecast of $7.85. Zacks Research has a “Strong-Buy” rating on the stock. 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 Q4 2025 earnings at $0.17 EPS, Q1 2026 earnings at $2.50 EPS, Q2 2026 earnings at $2.32 EPS, Q3 2026 earnings at $2.43 EPS, Q1 2027 earnings at $1.59 EPS, Q2 2027 earnings at $2.34 EPS and Q3 2027 earnings at $3.60 EPS.

Bread Financial (NYSE:BFH) last released its quarterly earnings data on Thursday, October 23rd. The company reported $4.02 earnings per share for the quarter, topping the consensus estimate of $2.11 by $1.91. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.The business had revenue of $971.00 million during the quarter, compared to analysts’ expectations of $974.30 million. During the same quarter last year, the business posted $1.83 EPS. The business’s revenue was down 1.2% on a year-over-year basis. Bread Financial has set its FY 2025 guidance at EPS.

Other equities research analysts have also recently issued reports about the stock. Barclays raised their target price on shares of Bread Financial from $50.00 to $52.00 and gave the stock an “underweight” rating in a research report on Friday, October 24th. Keefe, Bruyette & Woods lowered their price objective on shares of Bread Financial from $88.00 to $71.00 and set an “outperform” rating for the company in a report on Wednesday, October 1st. Weiss Ratings restated a “hold (c+)” rating on shares of Bread Financial in a report on Wednesday, October 8th. Wall Street Zen cut Bread Financial from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 9th. Finally, Morgan Stanley set a $55.00 target price on Bread Financial and gave the company an “underweight” rating in a research note on Friday, October 24th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $70.00.

Bread Financial Stock Performance

Shares of BFH stock opened at $64.09 on Thursday. The stock has a fifty day moving average of $61.45 and a 200 day moving average of $57.80. Bread Financial has a 52 week low of $38.21 and a 52 week high of $68.01. The firm has a market capitalization of $2.93 billion, a price-to-earnings ratio of 6.53, a PEG ratio of 0.50 and a beta of 1.41. The company has a quick ratio of 1.18, a current ratio of 1.19 and a debt-to-equity ratio of 0.33.

Bread Financial declared that its board has authorized a stock buyback program on Wednesday, August 27th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Bread Financial Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 12th. Stockholders of record on Friday, November 7th will be given a $0.23 dividend. The ex-dividend date of this dividend is Friday, November 7th. This represents a $0.92 annualized dividend and a dividend yield of 1.4%. This is a boost from Bread Financial’s previous quarterly dividend of $0.21. Bread Financial’s payout ratio is presently 9.37%.

Hedge Funds Weigh In On Bread Financial

Several large investors have recently modified their holdings of the stock. Franklin Resources Inc. raised its holdings in Bread Financial by 16.9% in the second quarter. Franklin Resources Inc. now owns 1,720,613 shares of the company’s stock worth $98,281,000 after buying an additional 248,401 shares during the last quarter. American Century Companies Inc. raised its holdings in Bread Financial by 2.0% in the 2nd quarter. American Century Companies Inc. now owns 1,490,745 shares of the company’s stock worth $85,151,000 after acquiring an additional 28,901 shares during the last quarter. Wellington Management Group LLP raised its holdings in Bread Financial by 45.0% in the 1st quarter. Wellington Management Group LLP now owns 1,320,418 shares of the company’s stock worth $66,127,000 after acquiring an additional 409,877 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Bread Financial by 25.1% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,233,121 shares of the company’s stock worth $70,436,000 after acquiring an additional 247,437 shares during the last quarter. Finally, Allianz Asset Management GmbH raised its holdings in Bread Financial by 44.5% in the 3rd quarter. Allianz Asset Management GmbH now owns 943,659 shares of the company’s stock worth $52,628,000 after acquiring an additional 290,803 shares during the last quarter. Hedge funds and other institutional investors own 99.52% of the company’s stock.

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.