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Based in Stamford, Connecticut, Synchrony Financial (SYF), with a market cap of $19.3 billion, is a leading consumer financial services company offering diverse credit products across retail, digital, and healthcare sectors. The consumer credit company is expected to announce its fiscal Q2 earnings results before the market opens on Wednesday, July 17.
Ahead of the event, analysts expect SYF to report a profit of $1.36 per share, up 3% from $1.32 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Due to higher provisions tied to the Ally deal, Synchrony Financial missed the consensus EPS estimate by 13.9% in the most recent quarter.
For fiscal 2024, analysts expect Synchrony Financial to report EPS of $5.71, up 10% from $5.19 in fiscal 2023.
Synchrony Financial has surged 41.6% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 23.8% gain and the S&P 500 Financials Sector SPDR's (XLF) nearly 23% returns over the same period.
Shares of SYF rose following its better-than-expected Q4 earnings result on Jan. 23 due to optimism about increased interest income expectations for 2024, buoyed by resilient consumer spending despite concerns over inflation and interest rates. However, the stock declined the following day after its Q1 earnings release on Apr. 24 due to missed profit expectations stemming from higher provisions related to its recent acquisition of Ally Financial’s (ALLY) point-of-sale financing unit.
Analysts' consensus view on Synchrony Financial stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 22 analysts covering the stock, 11 recommend a "Strong Buy," one has a "Moderate Buy" rating, eight give a "Hold" rating, and two suggest a "Strong Sell." This configuration is more bullish than three months ago, with eight analysts suggesting a "Strong Buy."
Currently, SYF is trading above the average analyst price target for SYF is $46.95.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
