Bread Financial (NYSE:BFH) Posts Quarterly Earnings Results, Beats Estimates By $0.50 EPS

Bread Financial (NYSE:BFH) announced its quarterly earnings data on Thursday. The company reported $3.84 EPS for the quarter, beating the consensus estimate of $3.34 by $0.50, FiscalAI reports. Bread Financial had a return on equity of 18.42% and a net margin of 11.95%. The business had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same period in the previous year, the business earned $4.02 earnings per share. The business’s revenue was up 4.7% on a year-over-year basis.

Here are the key takeaways from Bread Financial’s conference call:

• Loan growth and revenue remained strong: Third-quarter end-of-period loans rose 7% to $18.9 billion, credit sales increased 9%, and revenue grew 5% year over year. Management cited new partnerships, general-purpose spending, and momentum in furniture and installment-loan programs.
• Credit performance improved: The net credit loss rate declined 99 basis points year over year to 6.40%, while delinquencies fell 47 basis points to 5.57%. Bread raised its 2026 net loss rate outlook for the second consecutive quarter, now expecting 6.9%–7.0%.
• Funding and balance-sheet strength advanced: Consumer deposits increased 21% to $9.9 billion and represented 53% of total funding, while the completed bank merger is expected to provide additional deposit-growth and capital efficiencies. Moody’s also upgraded the company’s credit rating.
• Partner momentum and shareholder returns continued: Bread renewed long-term agreements with Signet Jewelers and Sephora, repurchased $75 million of stock, and increased its quarterly dividend by 9%. Management also highlighted opportunities from technology, analytics, and AI investments.
• Some profitability headwinds remain: Management expects fourth-quarter net interest margin to decline modestly because of seasonality, lower billed late fees, and deposit-rate pressure, while the evolving product mix may weigh on margins. Fourth-quarter buybacks are expected to be minimal as capital is directed toward seasonal loan growth.

Bread Financial Trading Down 5.5%

Shares of NYSE BFH opened at $102.61 on Friday. Bread Financial has a 1-year low of $59.26 and a 1-year high of $114.53. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.17 and a quick ratio of 1.17. The business’s 50 day moving average is $104.63 and its two-hundred day moving average is $98.66. The stock has a market capitalization of $3.94 billion, a P/E ratio of 7.86, a PEG ratio of 0.86 and a beta of 1.15.

Bread Financial Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be given a $0.25 dividend. This is an increase from Bread Financial’s previous quarterly dividend of $0.23. This represents a $1.00 annualized dividend and a yield of 1.0%. The ex-dividend date is Monday, November 30th. Bread Financial’s dividend payout ratio (DPR) is 7.18%.

Wall Street Analysts Forecast Growth

BFH has been the topic of a number of research analyst reports. BTIG Research boosted their price target on Bread Financial from $105.00 to $132.00 and gave the stock a “buy” rating in a report on Tuesday, June 30th. TD Cowen cut their price objective on shares of Bread Financial from $114.00 to $111.00 and set a “hold” rating for the company in a report on Tuesday, October 6th. Barclays lifted their price objective on shares of Bread Financial from $109.00 to $110.00 and gave the company an “equal weight” rating in a research report on Monday, October 5th. Wells Fargo & Company started coverage on shares of Bread Financial in a report on Friday, September 11th. They issued an “equal weight” rating and a $115.00 price target on the stock. Finally, Morgan Stanley set a $107.00 target price on Bread Financial in a research report on Friday, July 24th. Eight investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $112.29.

Insider Activity

In other news, Director Praniti Lakhwara sold 2,802 shares of Bread Financial stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $106.12, for a total value of $297,348.24. Following the completion of the transaction, the director owned 4,458 shares in the company, valued at approximately $473,082.96. The trade was a 38.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.30% of the stock is owned by insiders.

Key Stories Impacting Bread Financial

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Third-quarter revenue rose 4.7% year over year to $1.02 billion, slightly exceeding the $1.01 billion analyst estimate. Adjusted EPS of $3.84 also surpassed consensus estimates, which ranged from $3.26 to $3.34. Bread Financial Holdings Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: The board increased the quarterly common-stock dividend to $0.25 per share from $0.23, an approximately 9% increase. The dividend is payable December 15 to shareholders of record November 30; preferred-stock dividends were also declared. Bread Financial Declares Dividends
• Positive Sentiment: Bread Financial renewed its long-term relationship with Sephora, supporting continued credit-card and loyalty-program activity with a major retail partner. Bread Financial and Sephora Sign Long-Term Renewal

Bread Financial Company Profile

Bread Financial Holdings, Inc (NYSE: BFH) is a financial services company that provides payment, lending and savings solutions to consumers and businesses. Its offerings include private-label and co-branded credit cards, installment lending, buy now, pay later services and deposit products.

The company operates through its Bread platform, which supports merchants with financing options, payment processing and customer loyalty solutions. Its consumer products have included Bread Cashback credit cards, Bread Pay installment payment services and Bread Savings deposit accounts.

Bread Financial primarily serves consumers and merchants in the United States, with solutions designed for retail, travel, home improvement and other industries.