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Synchrony (SYF) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended September 2024, Synchrony (SYF - Free Report) reported revenue of $4.61 billion, up 5.7% over the same period last year. EPS came in at $1.94, compared to $1.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.51 billion, representing a surprise of +2.09%. The company delivered an EPS surprise of +9.60%, with the consensus EPS estimate being $1.77.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Synchrony performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 31.2% compared to the 32.8% average estimate based on four analysts.
Net interest margin: 15% versus the four-analyst average estimate of 14.5%.
Total Average Loan receivables, including held for sale: $102.01 billion versus the three-analyst average estimate of $102.69 billion.
Net charge-offs as of average loan receivables: 6.1% compared to the 5.7% average estimate based on three analysts.
Total Purchase Volume: $44.99 billion versus $46.50 billion estimated by three analysts on average.
Total Period-end loan receivables: $102.19 billion versus the three-analyst average estimate of $103.25 billion.
Total interest-earning assets - Average Balance: $121.91 billion versus the three-analyst average estimate of $124.11 billion.
Platform Analysis - Digital - Period-end loan receivables: $27.77 billion versus $27.91 billion estimated by two analysts on average.
Platform Analysis - Home & Auto - Average loan receivables, including held for sale: $32.61 billion versus the two-analyst average estimate of $32.89 billion.
Platform Analysis - Diversified & Value - Purchase volume: $14.99 billion compared to the $15.43 billion average estimate based on two analysts.
Platform Analysis - Diversified & Value - Period-end loan receivables: $19.47 billion versus the two-analyst average estimate of $19.76 billion.
Platform Analysis - Diversified & Value - Average loan receivables, including held for sale: $19.41 billion versus the two-analyst average estimate of $19.61 billion.
Shares of Synchrony have returned +8.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Synchrony (SYF) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2024, Synchrony (SYF - Free Report) reported revenue of $4.61 billion, up 5.7% over the same period last year. EPS came in at $1.94, compared to $1.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.51 billion, representing a surprise of +2.09%. The company delivered an EPS surprise of +9.60%, with the consensus EPS estimate being $1.77.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Synchrony performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio: 31.2% compared to the 32.8% average estimate based on four analysts.
- Net interest margin: 15% versus the four-analyst average estimate of 14.5%.
- Total Average Loan receivables, including held for sale: $102.01 billion versus the three-analyst average estimate of $102.69 billion.
- Net charge-offs as of average loan receivables: 6.1% compared to the 5.7% average estimate based on three analysts.
- Total Purchase Volume: $44.99 billion versus $46.50 billion estimated by three analysts on average.
- Total Period-end loan receivables: $102.19 billion versus the three-analyst average estimate of $103.25 billion.
- Total interest-earning assets - Average Balance: $121.91 billion versus the three-analyst average estimate of $124.11 billion.
- Platform Analysis - Digital - Period-end loan receivables: $27.77 billion versus $27.91 billion estimated by two analysts on average.
- Platform Analysis - Home & Auto - Average loan receivables, including held for sale: $32.61 billion versus the two-analyst average estimate of $32.89 billion.
- Platform Analysis - Diversified & Value - Purchase volume: $14.99 billion compared to the $15.43 billion average estimate based on two analysts.
- Platform Analysis - Diversified & Value - Period-end loan receivables: $19.47 billion versus the two-analyst average estimate of $19.76 billion.
- Platform Analysis - Diversified & Value - Average loan receivables, including held for sale: $19.41 billion versus the two-analyst average estimate of $19.61 billion.
View all Key Company Metrics for Synchrony here>>>Shares of Synchrony have returned +8.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.