Wall Street analysts forecast that Synchrony (SYF) will report quarterly earnings of $2.26 per share in its upcoming release, pointing to a year-over-year increase of 19.6%. It is anticipated that revenues will amount to $4.67 billion, exhibiting an increase of 4.6% compared to the year-ago quarter.
Over the last 30 days, there has been a downward revision of 1.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Synchrony metrics that are commonly tracked and projected by analysts on Wall Street.
The combined assessment of analysts suggests that 'Efficiency Ratio' will likely reach 34.9%. The estimate compares to the year-ago value of 33.4%.
The consensus among analysts is that 'Net interest margin' will reach 15.6%. Compared to the present estimate, the company reported 14.7% in the same quarter last year.
Analysts predict that the 'Total Average Loan receivables, including held for sale' will reach $101.23 billion. The estimate is in contrast to the year-ago figure of $101.02 billion.
Analysts expect 'Net charge-offs as of average loan receivables' to come in at 5.7%. The estimate is in contrast to the year-ago figure of 6.4%.
The collective assessment of analysts points to an estimated 'Total Purchase Volume' of $41.98 billion. Compared to the current estimate, the company reported $40.72 billion in the same quarter of the previous year.
It is projected by analysts that the 'Total Period-end loan receivables' will reach $99.16 billion. Compared to the current estimate, the company reported $99.61 billion in the same quarter of the previous year.
The average prediction of analysts places 'Total interest-earning assets - Average Balance' at $120.49 billion. Compared to the present estimate, the company reported $122.79 billion in the same quarter last year.
Analysts' assessment points toward 'Platform Analysis - Digital - Purchase volume' reaching $13.14 billion. Compared to the current estimate, the company reported $12.48 billion in the same quarter of the previous year.
Analysts forecast 'Platform Analysis - Home & Auto - Period-end loan receivables' to reach $28.67 billion. The estimate compares to the year-ago value of $30.46 billion.
The consensus estimate for 'Platform Analysis - Digital - Average loan receivables, including held for sale' stands at $29.13 billion. The estimate is in contrast to the year-ago figure of $28.22 billion.
According to the collective judgment of analysts, 'Platform Analysis - Diversified & Value - Purchase volume' should come in at $14.38 billion. The estimate compares to the year-ago value of $13.73 billion.
Based on the collective assessment of analysts, 'Platform Analysis - Diversified & Value - Period-end loan receivables' should arrive at $19.84 billion. The estimate compares to the year-ago value of $19.44 billion.
View all Key Company Metrics for Synchrony here>>>Shares of Synchrony have demonstrated returns of +16.6% over the past month compared to the Zacks S&P 500 composite's +6% change. With a Zacks Rank #3 (Hold), SYF is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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