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Synchrony Financial (SYF - Free Report) is one of the nation’s premier consumer financial services companies that offers a wide range of credit products through a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health and wellness providers.
Synchrony Financial has been witnessing strong revenue growth on the back of both organic and inorganic strategies. Acquisition of Citi Health Card portfolio and GPShopper in the first quarter of 2017, significantly added to the company’s top line. The company has been continuously investing in technologically in order to upgrade its offerings. Synchrony Financial has been aggressively forming strategic alliances in order to strengthen its position in the market.
CareCredit, an unit of Synchrony Financial is a leading provider of promotional financing to consumers for health and personal care procedures, products or services. In addition, the company’s consistent cash flow generation has substantially supported its capital deployment activities aimed at enhancing shareholders’ value.
However, Synchrony Financial has been witnessing a steep rise in its expenses for long. Increasing allowance for loan losses as well as rising fraud related losses remain major areas of concern.
The company delivered positive earnings surprises in three of the last four quarters with an average beat of 0.4%.
We have highlighted some of the key stats from this just-revealed announcement below:
The Bottom Line
Synchrony Financial beats on earnings. Our consensus called for EPS of 64cents and the company reported earnings per share of 70 cents. However, EPS declined 4.1% year over year.
Net revenues, in terms of net interest income also surpassed expectations. Synchrony Financial posted operating revenues of $3.9 billion, where as our consensus estimate is $3.8 billion. Revenues also increased 11% year over year.
Key Stats
Provision for loan losses increased 33% to $1.31 million over the prior year quarter.
Net interest margin increased 40 basis points to 16.74%
Return on assets was 2.4% and return on equity was 15.3%..
Efficiency ratio was 30.4%, down 20 basis points year over year, driven by strong positive operating leverage..
Check back later for our full write up on this SYF earnings report later!
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Synchrony Financial (SYF) Tops Q3 Earnings, Revenues
Synchrony Financial (SYF - Free Report) is one of the nation’s premier consumer financial services companies that offers a wide range of credit products through a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health and wellness providers.
Synchrony Financial has been witnessing strong revenue growth on the back of both organic and inorganic strategies. Acquisition of Citi Health Card portfolio and GPShopper in the first quarter of 2017, significantly added to the company’s top line. The company has been continuously investing in technologically in order to upgrade its offerings. Synchrony Financial has been aggressively forming strategic alliances in order to strengthen its position in the market.
CareCredit, an unit of Synchrony Financial is a leading provider of promotional financing to consumers for health and personal care procedures, products or services. In addition, the company’s consistent cash flow generation has substantially supported its capital deployment activities aimed at enhancing shareholders’ value.
However, Synchrony Financial has been witnessing a steep rise in its expenses for long. Increasing allowance for loan losses as well as rising fraud related losses remain major areas of concern.
The company delivered positive earnings surprises in three of the last four quarters with an average beat of 0.4%.
Currently, Synchrony Financial has a Zacks Rank #5 (Strong Sell), but that could definitely change following the company’s earnings report which was just released. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here
We have highlighted some of the key stats from this just-revealed announcement below:
The Bottom Line
Synchrony Financial beats on earnings. Our consensus called for EPS of 64cents and the company reported earnings per share of 70 cents. However, EPS declined 4.1% year over year.
Synchrony Financial Price and EPS Surprise
Synchrony Financial Price and EPS Surprise | Synchrony Financial Quote
The Top Line
Net revenues, in terms of net interest income also surpassed expectations. Synchrony Financial posted operating revenues of $3.9 billion, where as our consensus estimate is $3.8 billion. Revenues also increased 11% year over year.
Key Stats
Provision for loan losses increased 33% to $1.31 million over the prior year quarter.
Net interest margin increased 40 basis points to 16.74%
Return on assets was 2.4% and return on equity was 15.3%..
Efficiency ratio was 30.4%, down 20 basis points year over year, driven by strong positive operating leverage..
Check back later for our full write up on this SYF earnings report later!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>