Bread Financial (NYSE:BFH) Issues Quarterly Earnings Results

Bread Financial (NYSE:BFH) announced its quarterly earnings data on Thursday. The company reported $3.55 earnings per share for the quarter, beating analysts’ consensus estimates of $2.74 by $0.81, FiscalAI reports. The business had revenue of $993.00 million for the quarter, compared to analyst estimates of $959.32 million. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The company’s revenue was up 6.9% on a year-over-year basis. During the same period in the prior year, the company earned $3.15 earnings per share.

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

• Bread Financial said second-quarter results were strong, with net income of $146 million, 11% credit sales growth, 5% loan growth, and 22% year-over-year growth in tangible book value per share.
• Credit quality improved materially, as the delinquency rate fell to 5.25% and the net loss rate declined to 6.98%; management also raised its full-year net loss guidance to 7.0%–7.1%.
• The company’s direct-to-consumer deposit franchise continued to scale, with deposits up 16% year over year to $9.4 billion and now representing 50% of the funding mix, which management called an important milestone.
• Management increased its 2026 loan growth and revenue outlook to low-to-mid single-digit growth and expects positive operating leverage, though it also warned that expenses will rise in the back half of the year as growth and technology investments ramp.
• Bread Financial continued to return capital aggressively, issuing preferred stock and repurchasing 2.8 million shares in the quarter, while ending with a strong CET1 ratio of 12.9% and ample liquidity.

Bread Financial Trading Down 0.8%

Shares of BFH stock traded down $0.80 on Thursday, hitting $101.07. 248,843 shares of the stock traded hands, compared to its average volume of 757,257. Bread Financial has a twelve month low of $53.83 and a twelve month high of $109.91. The stock has a market capitalization of $4.08 billion, a PE ratio of 8.28, a PEG ratio of 0.90 and a beta of 1.10. The firm’s 50-day moving average price is $96.66 and its two-hundred day moving average price is $83.81. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.15 and a current ratio of 1.15.

Insider Activity

In other news, CEO Ralph J. Andretta sold 15,000 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $89.10, for a total transaction of $1,336,500.00. Following the completion of the transaction, the chief executive officer directly owned 582,241 shares in the company, valued at approximately $51,877,673.10. This represents a 2.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Roger H. Ballou sold 9,687 shares of the business’s stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $90.32, for a total transaction of $874,929.84. Following the completion of the sale, the director owned 30,079 shares in the company, valued at approximately $2,716,735.28. This trade represents a 24.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On Bread Financial

Hedge funds have recently made changes to their positions in the stock. Kemnay Advisory Services Inc. acquired a new position in Bread Financial during the fourth quarter worth $28,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Bread Financial by 141.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after purchasing an additional 329 shares during the period. EverSource Wealth Advisors LLC grew 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. Caitong International Asset Management Co. Ltd increased its stake in Bread Financial by 8,300.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock worth $47,000 after buying an additional 830 shares during the period. Finally, Quarry LP lifted its holdings in Bread Financial by 1,509.1% during the 3rd quarter. Quarry LP now owns 885 shares of the company’s stock worth $49,000 after buying an additional 830 shares in the last quarter. Hedge funds and other institutional investors own 99.52% of the company’s stock.

Analyst Ratings Changes

BFH has been the subject of several research reports. Wolfe Research restated a “positive” rating on shares of Bread Financial in a research note on Wednesday, June 10th. Wall Street Zen raised Bread Financial from a “hold” rating to a “buy” rating in a research report on Saturday, June 13th. Evercore restated an “outperform” rating and issued a $116.00 price objective on shares of Bread Financial in a research report on Monday, July 6th. Weiss Ratings raised shares of Bread Financial from a “buy (b-)” rating to a “buy (b)” rating in a report on Monday, April 27th. Finally, Barclays upgraded shares of Bread Financial from an “underweight” rating to an “equal weight” rating and boosted their target price for the company from $70.00 to $104.00 in a research note on Tuesday, July 7th. Eight equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Bread Financial has a consensus rating of “Hold” and a consensus price target of $108.25.

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.