Wall Street analysts expect Synchrony (SYF) to post quarterly earnings of $1.66 per share in its upcoming report, which indicates a year-over-year increase of 40.7%. Revenues are expected to be $4.55 billion, up 3.4% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 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.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance 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.
In light of this perspective, let's dive into the average estimates of certain Synchrony metrics that are commonly tracked and forecasted by Wall Street analysts.
The combined assessment of analysts suggests that 'Efficiency Ratio' will likely reach 32.4%. The estimate compares to the year-ago value of 25.1%.
According to the collective judgment of analysts, 'Net interest margin' should come in at 14.8%. The estimate is in contrast to the year-ago figure of 14.6%.
Analysts predict that the 'Total Average Loan receivables, including held for sale' will reach $102.79 billion. Compared to the current estimate, the company reported $100.96 billion in the same quarter of the previous year.
The consensus among analysts is that 'Net charge-offs as of average loan receivables' will reach 6.6%. The estimate is in contrast to the year-ago figure of 6.3%.
The collective assessment of analysts points to an estimated 'Total Purchase Volume' of $42.35 billion. The estimate is in contrast to the year-ago figure of $42.39 billion.
The average prediction of analysts places 'Total Period-end loan receivables' at $102.39 billion. The estimate is in contrast to the year-ago figure of $101.73 billion.
The consensus estimate for 'Total interest-earning assets - Average Balance' stands at $125.95 billion. Compared to the current estimate, the company reported $121.79 billion in the same quarter of the previous year.
Analysts expect 'Platform Analysis - Digital - Period-end loan receivables' to come in at $27.95 billion. Compared to the present estimate, the company reported $27.73 billion in the same quarter last year.
Analysts' assessment points toward 'Platform Analysis - Home & Auto - Average loan receivables, including held for sale' reaching $32.33 billion. Compared to the current estimate, the company reported $31.87 billion in the same quarter of the previous year.
It is projected by analysts that the 'Platform Analysis - Diversified & Value - Purchase volume' will reach $14.24 billion. The estimate compares to the year-ago value of $14.02 billion.
Analysts forecast 'Platform Analysis - Diversified & Value - Period-end loan receivables' to reach $19.69 billion. The estimate is in contrast to the year-ago figure of $19.56 billion.
Based on the collective assessment of analysts, 'Platform Analysis - Diversified & Value - Average loan receivables, including held for sale' should arrive at $19.75 billion. The estimate compares to the year-ago value of $19.59 billion.
View all Key Company Metrics for Synchrony here>>>
Over the past month, Synchrony shares have recorded returns of -10.4% versus the Zacks S&P 500 composite's -4.2% change. Based on its Zacks Rank #3 (Hold), SYF will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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