Core Insights - Bread Financial Holdings, Inc. reported a performance update highlighting a net loss rate of 6.9% for the three months ended September 30, 2025, a decrease from 7.4% in the same period last year [1] - The delinquency rate improved to 6.0% as of September 30, 2025, down from 6.4% a year earlier [1] - The company experienced a year-over-year decline in average credit card and other loans, with a 2% decrease in the three months ended September 30, 2025, compared to the previous year [1] Financial Performance - End-of-period credit card and other loans stood at $17.655 billion as of September 30, 2025, unchanged from the previous year [1] - Average credit card and other loans were reported at $17.605 billion for the three months ended September 30, 2025, compared to $17.596 billion in the same period last year [1] - Net principal losses for the period were $101 million, a significant decrease from $328 million in the previous year [1] Delinquency and Loss Rates - The net loss rate for the company was recorded at 6.9% for the three months ended September 30, 2025, compared to 7.4% for the same period in 2024 [1] - The total amount of 30 days or more delinquencies in principal was $963 million as of September 30, 2025, down from $1.062 billion a year prior [1] - The delinquency rate reflects an improvement, indicating better credit performance and management [1]

Core Insights - Raymour & Flanigan has entered a long-term agreement with Bread Financial to launch a private label credit program aimed at enhancing customer purchasing flexibility and convenience [1][2][3] Company Overview - Raymour & Flanigan is the largest furniture and mattress retailer in the Northeast and the seventh largest nationwide, with 104 showrooms, 36 outlet stores, and 5 clearance centers [6] - The company emphasizes exceptional customer service, advanced technology solutions, and quality products, alongside a commitment to sustainability by recycling over 99% of packaging materials, equating to 20 million pounds annually [6] Partnership Details - The new financing program will integrate seamlessly into Raymour & Flanigan's platforms, supporting their commitment to customer service and making home furnishings more accessible [2][3] - Bread Financial will utilize data-driven insights to enhance the customer experience across various channels [2][3] Strategic Goals - The partnership aims to provide immediate value and flexibility to shoppers, aligning with Raymour & Flanigan's vision of making it easier for customers to create their ideal homes [3] - Both companies are focused on delivering differentiated value to loyal customers through this new financing initiative [3]

Core Viewpoint - Bread Financial Holdings, Inc. announced its third quarter 2025 financial results, highlighting its position as a tech-forward financial services company that offers flexible payment, lending, and saving solutions [1]. Group 1: Financial Performance - The company has made its third quarter 2025 financial results available on its investor relations website [1]. - A conference call will be hosted by the President and CEO Ralph Andretta and CFO Perry Beberman to discuss the results [2]. Group 2: Company Overview - Bread Financial provides personalized payment, lending, and saving solutions to millions of U.S. consumers, including general purpose credit cards and savings products [3]. - The company supports growth for recognized brands in various sectors such as travel & entertainment, health & beauty, jewelry, and specialty apparel through private label and co-brand credit cards [3].

Core Viewpoint - Bread Financial Holdings, Inc. has announced a quarterly cash dividend increase and a significant share repurchase authorization, reflecting strong financial health and commitment to shareholder value [1][2][3]. Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.23 per share, which is a 10% increase from the previous dividend of $0.21 per share [1]. - The dividend is payable on December 12, 2025, to stockholders of record as of November 7, 2025 [1]. Share Repurchase Authorization - The company approved a $200 million increase to its existing share repurchase authorization, bringing the total available for repurchases to $340 million [2]. - There is no expiration date for the share repurchase authorization [2]. Financial Strength and Strategy - The company emphasizes its strong capital and cash flow generation, along with a robust balance sheet, which allows it to pursue capital and growth priorities simultaneously [3]. - This strategy aims to deliver additional value to shareholders through increased dividends and share repurchases [3].

Core Insights - Bread Financial Holdings (BFH) has a strong history of exceeding earnings estimates and is well-positioned for continued success in upcoming reports [1][6] Earnings Performance - The company has consistently beaten earnings estimates, with an average surprise of 52.96% over the last two quarters [2] - For the last reported quarter, Bread Financial achieved earnings of $3.14 per share, surpassing the Zacks Consensus Estimate of $1.85 per share by 69.73% [3] - In the previous quarter, the company reported earnings of $2.86 per share against an expected $2.1 per share, resulting in a surprise of 36.19% [3] Earnings Estimates and Predictions - Recent estimates for Bread Financial have been increasing, indicating positive sentiment among analysts [6] - The Zacks Earnings ESP for the company is currently +0.71%, suggesting bullish expectations for future earnings [9] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat [9] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8]

Core Insights - Bread Financial Holdings, Inc. (BFH) shares are trading at a significant discount compared to the Zacks Financial - Miscellaneous Services industry, with a forward price-to-earnings multiple of 6.28X versus the industry average of 24.85X [1] - The company has a market capitalization of $2.55 billion and an average trading volume of 0.6 million shares over the last three months [1] Growth Projections - The Zacks Consensus Estimate for BFH's 2025 earnings per share indicates a year-over-year increase of 9.6%, with revenues projected at $3.87 billion, reflecting a 0.8% improvement [5] - For 2026, earnings per share and revenues are expected to increase by 6.1% and 3.4%, respectively, compared to 2025 estimates [5] Analyst Sentiment - One of three analysts covering BFH has raised estimates for 2025, and three of seven analysts have raised estimates for 2026 in the past 60 days, leading to a 4.1% and 1.8% increase in the Zacks Consensus Estimate for 2025 and 2026 earnings, respectively [7] Credit Sales and Strategic Investments - BFH anticipates credit sales growth driven by strong consumer spending, new partnerships, and holiday demand, with average loans expected to rise alongside higher credit sales [9][13] - The company is making strategic investments in digital innovation, technology, and marketing to drive growth [15] Financial Metrics - BFH's return on invested capital over the trailing 12 months was 9.7%, outperforming the industry average of 5.1% [12] - The company has been strengthening its balance sheet and reducing debt, with plans to pay down $100 million in 2026 bonds this year [16] Shareholder Value - BFH is focused on returning value to shareholders through share repurchases and intends to increase its focus on buybacks and mergers and acquisitions [17] - The stock has a favorable VGM Score of A, indicating attractive value, growth, and momentum compared to peers [18] Valuation and Market Position - The average target price for BFH, based on short-term price targets from 15 analysts, is $71 per share, suggesting a potential upside of 27.45% from the last closing price [10] - Higher return on capital, favorable growth estimates, and attractive valuations are expected to benefit BFH in the long term [19]

Core Viewpoint - Bread Financial Holdings, Inc. will host a conference call on October 23, 2025, to discuss its third quarter 2025 results, highlighting its focus on personalized financial services [1]. Group 1: Company Overview - Bread Financial is a tech-forward financial services company that offers personalized payment, lending, and saving solutions to millions of U.S. consumers [3]. - The company provides general purpose credit cards and savings products, aiming to empower customers and enhance their quality of life [3]. - Bread Financial also supports growth for recognized brands in various sectors, including travel, health, beauty, jewelry, and specialty apparel through private label and co-brand credit cards [3]. Group 2: Conference Call Details - The conference call will take place at 8:30 a.m. ET, and participants can register in advance through the company's investor relations website [2]. - Analysts wishing to participate in the Q&A session are encouraged to register beforehand, and a webcast will accompany the call, which will also be archived for later access [2].

Company Overview - Bread Financial Holdings, Inc. (NYSE: BFH) is a consumer lender that primarily funds its loans through depositors [1] Stock Performance - The stock has remained essentially flat since the last bullish article was published, despite an impressive run-up previously [1] Investment Focus - The company is currently focused on income investing through common shares, preferred shares, or bonds [1]

Core Insights - Several mid-cap companies have initiated significant share buyback programs, indicating strong confidence in their future and commitment to returning capital to shareholders [1][2][13] Group 1: Post Holdings (POST) - Post has authorized a $500 million share buyback program, representing 8.5% of its market value, which is $5.9 billion [2][13] - The company has already repurchased 8% of its shares over the last three quarters and has historically spent an average of $106 million per quarter on buybacks [2][3] - Post's recent acquisition of 8th Avenue Food & Provisions for $880 million and the subsequent sale of its pasta business for $375 million will enhance its capacity for share repurchases [2][3] Group 2: Bread Financial (BFH) - Bread Financial has announced a $200 million share buyback program, equating to 6.5% of its market capitalization of approximately $3.1 billion [6][13] - The company has spent an average of $25 million per quarter on buybacks over the past three years, alongside $11 million on dividends, with a current dividend yield of 1.3% [6][5] Group 3: BellRing Brands (BRBR) - BellRing Brands has authorized a $400 million share buyback program, which is 8% of its market capitalization of around $5 billion [9][13] - The company has increased its buyback spending significantly, repurchasing $256 million worth of stock in the last two quarters, which is 43% of its total buyback history [10][9] - BellRing's Premier Protein brand holds a 25% market share in the U.S. and has seen a 19% sales growth compared to the previous year [8][9] Group 4: Lithia Motors (LAD) - Lithia Motors has announced a $750 million increase in its share buyback authorization, bringing its total buyback capacity to $1.08 billion, which is 12.3% of its market capitalization of approximately $8.75 billion [11][12] - The company has already reduced its share count by around 6.1% in 2025 and has a moderate dividend yield of about 0.7% [12][11] - Jefferies Financial Group has set a price target of $400 for Lithia, indicating a potential upside of approximately 17% [12][11] Group 5: Combined Buyback Capacity - The combined buyback capacity of Post, Bread Financial, BellRing Brands, and Lithia Motors totals $2.1 billion, reflecting a strong commitment to returning capital to shareholders [13]

Core Insights - The company announced a $200 million share repurchase authorization, indicating confidence from the executive leadership and the Board in returning value to shareholders [1] - A discrete tax item is expected to positively impact the company's performance in the third quarter [2]