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Synchrony (SYF) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts expect Synchrony (SYF - Free Report) to post quarterly earnings of $1.72 per share in its upcoming report, which indicates a year-over-year increase of 11%. Revenues are expected to be $4.5 billion, up 2.2% from the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

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 consensus estimate for 'Efficiency Ratio' stands at 32.5%. Compared to the current estimate, the company reported 31.7% in the same quarter of the previous year.

The average prediction of analysts places 'Net interest margin' at 14.5%. The estimate compares to the year-ago value of 14.5%.

According to the collective judgment of analysts, 'Total Average Loan receivables, including held for sale' should come in at $100.04 billion. The estimate is in contrast to the year-ago figure of $101.48 billion.

The combined assessment of analysts suggests that 'Net charge-offs as of average loan receivables' will likely reach 6.0%. The estimate compares to the year-ago value of 6.4%.

It is projected by analysts that the 'Total Purchase Volume' will reach $45.17 billion. Compared to the current estimate, the company reported $46.85 billion in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Total Period-end loan receivables' should arrive at $100.94 billion. The estimate compares to the year-ago value of $102.28 billion.

Analysts' assessment points toward 'Total interest-earning assets - Average Balance' reaching $125.60 billion. Compared to the present estimate, the company reported $122.55 billion in the same quarter last year.

The consensus among analysts is that 'Platform Analysis - Digital - Period-end loan receivables' will reach $27.91 billion. The estimate compares to the year-ago value of $27.70 billion.

The collective assessment of analysts points to an estimated 'Platform Analysis - Home & Auto - Average loan receivables, including held for sale' of $31.05 billion. Compared to the current estimate, the company reported $32.59 billion in the same quarter of the previous year.

Analysts forecast 'Platform Analysis - Diversified & Value - Purchase volume' to reach $15.15 billion. The estimate compares to the year-ago value of $15.33 billion.

Analysts predict that the 'Platform Analysis - Diversified & Value - Period-end loan receivables' will reach $19.59 billion. Compared to the present estimate, the company reported $19.52 billion in the same quarter last year.

Analysts expect 'Platform Analysis - Diversified & Value - Average loan receivables, including held for sale' to come in at $19.43 billion. The estimate is in contrast to the year-ago figure of $19.36 billion.

View all Key Company Metrics for Synchrony here>>>

Shares of Synchrony have experienced a change of +12.8% in the past month compared to the +4.2% move of the Zacks S&P 500 composite. 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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