Wall Street analysts forecast that Synchrony (SYF) will report quarterly earnings of $2.48 per share in its upcoming release, pointing to a year-over-year decline of 13.3%. It is anticipated that revenues will amount to $4.84 billion, exhibiting an increase of 2.5% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 3.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during 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 indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Synchrony metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Net interest margin' should come in at 15.5%. Compared to the current estimate, the company reported 15.6% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Efficiency Ratio' of 34.8%. The estimate compares to the year-ago value of 32.6%.
The average prediction of analysts places 'Total - Period-end loan receivables' at $103.46 billion. Compared to the present estimate, the company reported $100.18 billion in the same quarter last year.
Analysts predict that the 'Total - Purchase volume' will reach $49.21 billion. The estimate is in contrast to the year-ago figure of $46.01 billion.
The combined assessment of analysts suggests that 'Net charge-offs as a % of average loan receivables, including held for sale' will likely reach 5.0%. Compared to the current estimate, the company reported 5.2% in the same quarter of the previous year.
The consensus estimate for 'Average Balance - Total interest-earning assets' stands at $122.71 billion. The estimate is in contrast to the year-ago figure of $119.89 billion.
The consensus among analysts is that 'Total - Average loan receivables, including held for sale' will reach $102.73 billion. Compared to the current estimate, the company reported $99.89 billion in the same quarter of the previous year.
Analysts forecast 'Platform Analysis - Diversified & Value - Period-end loan receivables' to reach $21.05 billion. Compared to the current estimate, the company reported $19.50 billion in the same quarter of the previous year.
Analysts' assessment points toward 'Platform Analysis - Diversified & Value - Average loan receivables, including held for sale' reaching $20.86 billion. Compared to the present estimate, the company reported $19.44 billion in the same quarter last year.
Analysts expect 'Platform Analysis - Health & Wellness - Purchase volume' to come in at $4.14 billion. The estimate compares to the year-ago value of $3.98 billion.
Based on the collective assessment of analysts, 'Platform Analysis - Health & Wellness - Period-end loan receivables' should arrive at $15.76 billion. Compared to the present estimate, the company reported $15.45 billion in the same quarter last year.
It is projected by analysts that the 'Platform Analysis - Health & Wellness - Average loan receivables, including held for sale' will reach $15.57 billion. Compared to the current estimate, the company reported $15.35 billion in the same quarter of the previous year.
View all Key Company Metrics for Synchrony here>>>Synchrony shares have witnessed a change of -4.2% in the past month, in contrast to the Zacks S&P 500 composite's +1.4% move. With a Zacks Rank #3 (Hold), SYF is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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