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Wall Street's Insights Into Key Metrics Ahead of Synchrony (SYF) Q4 Earnings

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Analysts on Wall Street project that Synchrony (SYF - Free Report) will announce quarterly earnings of $2.02 per share in its forthcoming report, representing an increase of 5.8% year over year. Revenues are projected to reach $4.79 billion, increasing 4.3% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

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 a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

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.

Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 32.7%. Compared to the current estimate, the company reported 33.3% in the same quarter of the previous year.

According to the collective judgment of analysts, 'Net interest margin' should come in at 15.7%. The estimate is in contrast to the year-ago figure of 15.0%.

The combined assessment of analysts suggests that 'Net charge-offs as of average loan receivables' will likely reach 5.4%. Compared to the current estimate, the company reported 6.5% in the same quarter of the previous year.

Analysts expect 'Total Average Loan receivables, including held for sale' to come in at $101.60 billion. The estimate is in contrast to the year-ago figure of $102.48 billion.

The collective assessment of analysts points to an estimated 'Total Purchase Volume' of $49.06 billion. Compared to the present estimate, the company reported $47.96 billion in the same quarter last year.

Analysts predict that the 'Total Period-end loan receivables' will reach $104.29 billion. The estimate is in contrast to the year-ago figure of $104.72 billion.

Analysts' assessment points toward 'Total interest-earning assets - Average Balance' reaching $120.27 billion. The estimate is in contrast to the year-ago figure of $121.72 billion.

The consensus estimate for 'Platform Analysis - Digital - Purchase volume' stands at $15.71 billion. The estimate is in contrast to the year-ago figure of $15.32 billion.

It is projected by analysts that the 'Platform Analysis - Home & Auto - Period-end loan receivables' will reach $31.11 billion. Compared to the present estimate, the company reported $32.03 billion in the same quarter last year.

The average prediction of analysts places 'Platform Analysis - Digital - Average loan receivables, including held for sale' at $28.66 billion. Compared to the present estimate, the company reported $28.16 billion in the same quarter last year.

The consensus among analysts is that 'Platform Analysis - Diversified & Value - Purchase volume' will reach $17.08 billion. Compared to the current estimate, the company reported $16.71 billion in the same quarter of the previous year.

Analysts forecast 'Platform Analysis - Diversified & Value - Period-end loan receivables' to reach $20.84 billion. Compared to the current estimate, the company reported $20.87 billion in the same quarter of the previous year.

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 +0.7% 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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