Stock of the Day

May 26, 2023

Bread Financial (BFH)

$104.15
-$1.59 (-1.5%)
Market Cap: $4.06B

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. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.

Today's Trend

Bread Financial Holdings, Inc. (NYSE:BFH) is receiving a mixed signal from the latest Zacks Research revisions. Analysts raised several forward earnings estimates, but maintained a “Hold” rating, which may limit the positive impact on the stock.

  • Zacks raised its FY2026 EPS forecast to $11.78 from $10.38, FY2027 EPS to $11.51 from $11.10, and FY2028 EPS to $12.48 from $12.03. The firm also increased Q3 2026 EPS to $3.10 from $2.95, Q4 2026 EPS to $0.98 from $0.88, Q3 2027 EPS to $4.34 from $3.96, and Q4 2027 EPS to $2.37 from $2.20. These revisions suggest improved expectations for profitability over several reporting periods.
  • Zacks lifted its Q2 2028 EPS estimate to $3.00 from $2.56, reinforcing a more favorable long-term earnings outlook. Bread Financial’s latest reported quarter also exceeded expectations, with EPS of $3.55 versus the $2.74 consensus and revenue of $992 million versus estimates of $959.3 million.
  • The analyst’s current full-year consensus remains $11.82 EPS, while Zacks continues to rate BFH “Hold.” The unchanged rating indicates that the higher earnings forecasts have not yet resulted in a stronger overall recommendation.
  • Zacks reduced its Q1 2027 EPS estimate to $2.42 from $2.49, Q2 2027 EPS to $2.39 from $2.46, and Q1 2028 EPS to $2.66 from $2.84. These cuts point to some expected near- and medium-term earnings pressure despite the broader upward revisions.

Overall, the revisions are modestly favorable because the annual forecasts and several later-quarter estimates increased. However, the mixed quarterly outlook and continued “Hold” rating provide limited fresh catalyst, helping explain why BFH shares have decreased despite the company’s recent earnings beat.

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