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Synchrony Financial (SYF) Beats on Q4 Earnings, Revenues
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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.
Despite having a solid earnings track record, and delivering positive earnings surprises in three of the last four quarters, it records an average beat of 2.02%.
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 63 cents and the company reported earnings per share of 70 cents. However, EPS remained flat year over year.
The Top Line: Net revenues, in terms of net interest income also surpassed expectations. Synchrony Financial posted operating revenues of $4 billion, where as our consensus estimate is $4.9 billion. Revenues also increased 8% year over year.
Key Stats: Provision for loan losses increased 26% to $1.4 million over the prior year quarter.
Net interest margin decreased 2 basis points to 16.24%
Return on assets was 1.6% and return on equity was 10.5%.
Efficiency ratio was 30.3%, down 130 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) Beats on Q4 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.
Despite having a solid earnings track record, and delivering positive earnings surprises in three of the last four quarters, it records an average beat of 2.02%.
Currently, Synchrony Financial has a Zacks Rank #3 (Hold), 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 Rank (Strong Buy) 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 63 cents and the company reported earnings per share of 70 cents. However, EPS remained flat 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 $4 billion, where as our consensus estimate is $4.9 billion. Revenues also increased 8% year over year.
Key Stats: Provision for loan losses increased 26% to $1.4 million over the prior year quarter.
Net interest margin decreased 2 basis points to 16.24%
Return on assets was 1.6% and return on equity was 10.5%.
Efficiency ratio was 30.3%, down 130 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!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research
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