Preview: Synchrony Finl's Earnings

Synchrony Finl (NYSE:SYF) will release its quarterly earnings report on Wednesday, 2024-10-16. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Synchrony Finl to report an earnings per share (EPS) of $1.79.

Anticipation surrounds Synchrony Finl's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.20, leading to a 2.66% drop in the share price on the subsequent day.

Synchrony Finl Share Price Analysis

Shares of Synchrony Finl were trading at $53.69 as of October 14. Over the last 52-week period, shares are up 80.9%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Synchrony Finl

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Synchrony Finl.

The consensus rating for Synchrony Finl is Neutral, based on 9 analyst ratings. With an average one-year price target of $54.22, there's a potential 0.99% upside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of Credit Acceptance and Enova International, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Credit Acceptance received a Sell consensus from analysts, with an average 1-year price target of $400.0, implying a potential 645.02% upside.
• The consensus outlook from analysts is an Outperform trajectory for Enova International, with an average 1-year price target of $90.5, indicating a potential 68.56% upside.

Peers Comparative Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Credit Acceptance and Enova International, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Kaspi.kz	Outperform	37.20%	$513.15B	18.86%
Credit Acceptance	Sell	12.42%	$330.70M	-2.94%
Enova International	Outperform	25.83%	$299.24M	4.69%

Key Takeaway:

Synchrony Finl ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Synchrony Finl is at the bottom compared to its peers.

About Synchrony Finl

Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).

Synchrony Finl's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Synchrony Finl's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 12.69%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Synchrony Finl's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 16.81% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.4%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Synchrony Finl's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.52%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.09, Synchrony Finl adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Synchrony Finl visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.