/Synchrony%20Financial%20on%20phone-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Based in Stamford, Connecticut, Synchrony Financial (SYF) is a leading consumer financial services company. With a market cap of $20.03 billion, SYF provides various products, including credit cards, savings accounts, and loans. It partners with different retailers and businesses to offer tailored financial solutions and is known for its Synchrony-branded credit cards. The company is scheduled to announce its Q3 earnings before the market opens on Wednesday, Oct. 16.
Ahead of the event, analysts expect SYF to report a profit of $1.80 per share, up 21.6% from $1.48 in the year-ago quarter. In the last four quarters, the company has surpassed Wall Street’s bottom-line estimates in three and missed on another occasion.
Its adjusted earnings of $1.55 per share for the last quarter surpassed the consensus estimate by 14.8%. Synchrony Financials’ Q2 2024 earnings beat was driven by growth in its loan receivables and higher interest and fees on loans despite increased credit losses and lower purchase volume.
For fiscal 2024, analysts expect SYF to report EPS of $5.79, up 11.6% from $5.19 in fiscal 2023.
SYF stock is up 29.9% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 20.2% gains and the Financial Select Sector SPDR Fund's (XLF) 19.8% returns over the same time frame.
On Sept. 10, Synchrony Financial shares dropped over 6% following warnings from JPMorgan Chase and Goldman Sachs about overly optimistic projections for next year's expenses and net interest income.
Also, on Jul. 17, SYF shares closed up 1% after reporting its Q2 earnings results. The company’s net interest income was $4.41 billion, falling short of Wall Street forecasts of $4.44 billion.
The consensus opinion on SYF stock is moderately bullish, with an overall “Moderate Buy” rating. Out of 22 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, eight suggest a “Hold,” and two advise “Strong Sell.” SYF's average analyst price target is $52.81, indicating a potential upside of 6.4% from the current levels.
On the date of publication, Rashmi Kumari 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.
