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]

Summary of Bread Financial FY Conference Call (September 09, 2025) Company Overview - **Company**: Bread Financial (NYSE: BFH) - **Industry**: Consumer Finance Key Points Financial Performance and Shareholder Returns - Announced a **$200 million share repurchase authorization**, indicating confidence in returning value to shareholders and maturing capital plans [3][49] - Anticipated a **discrete tax item** that will benefit the quarter [3][4] - Revenue share increase expected to impact non-interest income, leading to lower non-interest income compared to the previous quarter [4] Sales and Loan Growth - Sales momentum continued but at a slower pace, with positive year-over-year growth [4] - Loan growth impacted by the previous acquisition of a **$300 to $400 million portfolio from Saks**, which has now lapsed [5] - Current guidance for loan growth is **flat to slightly down year-over-year** by year-end 2025, primarily due to improved payment rates [19] Credit Quality and Charge-Offs - Charge-offs improved to **7.9% in Q2**, with expectations to land between **7.4% to 7.5% in Q3** and **7.8% to 7.9% for the full year** [9][11] - Improvement in delinquency rates attributed to early credit actions and a shift in product mix towards co-brand products [9][10] - No material impact observed on borrowers with student loans, with similar delinquency rates for those with and without student loans [12][14] Capital Management - The CET1 ratio is approximately **13%**, at the lower end of the medium-term guidance [49] - Focus on responsible growth, technology investment, debt repayment, and returning capital to shareholders [51] Product Mix and Growth Opportunities - Mid-term targets for loan growth remain in the **mid-single digits**, with long-term targets in the **high single digits** [23][24] - Diverse product offerings include private label credit cards, co-brand credit cards, installment loans, and buy now, pay later options [23][44] - Anticipated growth in **installment loans** and co-brand credit cards, with private label credit cards remaining a part of the portfolio [44] Competitive Landscape - Competition in the partnership space remains strong, with a focus on maintaining a full product suite to meet partner needs [35][36] - Renewed partnerships, such as with Caesars, and new partnerships like Crypto.com, are expected to drive growth [35][38][46] Regulatory Environment - Current administration viewed as more business-friendly, but state regulations remain a concern [55] Technology and AI Integration - Emphasis on being a **fast follower** in AI, focusing on practical applications to improve customer service and operational efficiency [56][58] Conclusion - Bread Financial is positioned for gradual improvement in credit quality and loan growth, with a strong focus on shareholder returns and product diversification. The company is navigating a competitive landscape while leveraging technology to enhance operations and customer experience.

Core Insights - Bread Financial Holdings, Inc. reported a performance update highlighting a slight decrease in average credit card and other loans by 1% year-over-year, from $17,760 million in August 2024 to $17,598 million in August 2025 [1] - The company experienced a net loss rate improvement, decreasing from 7.8% in August 2024 to 7.6% in August 2025, indicating better credit performance [1] - Delinquency rates also showed improvement, declining from 6.2% in August 2024 to 5.8% in August 2025, reflecting a positive trend in loan repayment behavior [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 [2] - The company provides general purpose credit cards and savings products, aiming to empower customers and enhance their financial well-being [2] - Bread Financial collaborates with recognized brands in various sectors, including travel, entertainment, health, beauty, jewelry, and specialty apparel, through private label and co-brand credit cards [2]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum, assigning ratings from A to F, with A indicating the highest potential for outperformance [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score evaluates stocks based on projected earnings and sales growth, emphasizing future financial health [5] - Momentum Score identifies stocks benefiting from current price trends, utilizing recent price changes and earnings estimate shifts [6] - VGM Score combines the three Style Scores to highlight stocks with the best overall characteristics in value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks, even with high Style Scores, may still face price declines [10] Company Spotlight: Bread Financial Holdings - Bread Financial, a tech-forward financial services company, is part of the S&P MidCap 400 and offers personalized payment and lending solutions [11] - Currently rated 3 (Hold) by Zacks, Bread Financial has a VGM Score of A and a Value Style Score of A, with a forward P/E ratio of 7.93 [12] - Recent upward revisions in earnings estimates indicate positive momentum, with the Zacks Consensus Estimate rising to $8.35 per share [12] - Given its solid Zacks Rank and favorable Style Scores, Bread Financial is recommended for investors' consideration [13]