Bread Financial (NYSE:BFH) Issues Quarterly Earnings Results, Beats Estimates By $1.91 EPS

Bread Financial (NYSE:BFH) posted its quarterly earnings results on Thursday. The company reported $4.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.11 by $1.91, Zacks reports. The firm had revenue of $971.00 million during the quarter, compared to analyst estimates of $974.30 million. Bread Financial had a net margin of 10.08% and a return on equity of 15.97%. The company’s quarterly revenue was down 1.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.83 earnings per share. Bread Financial updated its FY 2025 guidance to EPS.

Bread Financial Trading Up 0.1%

Shares of BFH stock opened at $65.54 on Friday. The stock has a market cap of $3.06 billion, a price-to-earnings ratio of 6.67, a PEG ratio of 0.59 and a beta of 1.41. The stock has a 50-day moving average of $61.16 and a 200-day moving average of $56.65. The company has a current ratio of 1.19, a quick ratio of 1.18 and a debt-to-equity ratio of 0.33. Bread Financial has a 1-year low of $38.21 and a 1-year high of $68.01.

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 paid a $0.23 dividend. The ex-dividend date of this dividend is Friday, November 7th. This is a positive change from Bread Financial’s previous quarterly dividend of $0.21. This represents a $0.92 annualized dividend and a dividend yield of 1.4%. Bread Financial’s payout ratio is currently 14.21%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on BFH shares. Wall Street Zen cut shares of Bread Financial from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 9th. Royal Bank Of Canada lifted their price target on shares of Bread Financial from $64.00 to $70.00 and gave the company a “sector perform” rating in a research note on Friday. Morgan Stanley set a $55.00 price objective on shares of Bread Financial and gave the stock an “underweight” rating in a research note on Friday. TD Cowen boosted their price target on Bread Financial from $63.00 to $68.00 and gave the company a “hold” rating in a research note on Friday. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Bread Financial in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $69.27.

Insider Buying and Selling at Bread Financial

In other news, Director John J. Fawcett purchased 1,027 shares of the business’s stock in a transaction on Wednesday, July 30th. The shares were acquired at an average price of $61.79 per share, for a total transaction of $63,458.33. Following the completion of the acquisition, the director owned 10,302 shares in the company, valued at approximately $636,560.58. The trade was a 11.07% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.85% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of BFH. EverSource Wealth Advisors LLC lifted its holdings in shares of Bread Financial by 127.2% in the second quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock valued at $41,000 after purchasing an additional 398 shares in the last quarter. Strs Ohio bought a new position in shares of Bread Financial in the first quarter valued at approximately $65,000. Headlands Technologies LLC bought a new position in shares of Bread Financial in the second quarter valued at approximately $184,000. Corient Private Wealth LLC bought a new position in shares of Bread Financial in the second quarter valued at approximately $220,000. Finally, Cetera Investment Advisers bought a new position in shares of Bread Financial in the second quarter valued at approximately $264,000. Institutional investors own 99.52% of the company’s stock.

Bread Financial announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, August 27th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

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.