We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Higher Purchase Volumes Lift Synchrony Financial's Q3 Earnings?
Read MoreHide Full Article
Key Takeaways
Synchrony to report Q3 results on Oct. 20; EPS is forecasted at $2.48, down 13.3%, on $4.84B revenues.
Q3 purchase volumes may rise 7%, while interest-earning assets increase 2.4% and active accounts 0.7%.
SYF faces higher employee and processing costs, nearly 10% RSA growth and a lower net interest margin.
Consumer financial services company, Synchrony Financial (SYF - Free Report) , is set to report third-quarter 2026 results on Oct. 20, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.48 per share on revenues of $4.84 billion.
The third-quarter earnings estimate has witnessed three upward revisions and no downward movements over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 13.3%. But the Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 2.6%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Synchrony Financial’s revenues is pegged at $19.07 billion, implying an increase of 3.3% year over year. However, the consensus mark for the current year EPS is pegged at $9.40, signaling a decline of around 0.2% on a year-over-year basis.
SYF’s earnings beat the consensus estimate in three of the past four quarters and met once, with the average surprise being 15.5%.
Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Synchrony Financial has an Earnings ESP of +5.87% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping SYF’s Q3 Results?
Synchrony Financial is expected to have seen advantages in the third quarter from increased interest-earning assets and higher purchase volumes. Our model predicts interest and fees on loans of $5.6 billion for the quarter, up 1.7% from a year ago. Higher figures from Health & Wellness and Digital are likely to anchor the results.
The consensus mark for total purchase volumes indicates 7% year-over-year growth. The Zacks Consensus Estimate indicates that the total average active accounts are likely to increase 0.7% in the third quarter. SYF is expected to witness a 2.4% increase in average interest-earning assets.
The consensus mark for the net charge-offsratio is pegged at 5.01, down from 5.16 a year ago. The above-mentioned factors are likely to have benefited the company in the third quarter, positioning it for an earnings beat.
However, Synchrony Financial is expected to have incurred increased information processing and employee costs in the third quarter, partially offsetting the positives. Also, RSA is expected to have increased nearly 10% year over year in the third quarter.
The Zacks Consensus Estimate for net interest margin is pegged at 15.50%, down from 15.62% achieved a year ago, decreasing its profitability.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for Chime Financial’s bottom line for the to-be-reported quarter is pegged at 9 cents, which indicates 160% year-over-year growth. The consensus estimate for CHYM’s revenues is pegged at $705.2 million, a 29.7% increase from a year ago.
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.49, growth of 41.9% from a year ago. The consensus estimate for VIRT’s revenues is pegged at $604.79 million, a 29.5% year-over-year jump.
Credicorp Ltd. (BAP - Free Report) has an Earnings ESP of +4.71% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Credicorp’s bottom line for the to-be-reported quarter is pegged at $7.51, which indicates 21.7% year-over-year growth. The consensus estimate for BAP’s revenues is pegged at $1.84 billion, an 11.7% increase from a year ago.
View the Zacks #1 Rank List
Image: Shutterstock
Can Higher Purchase Volumes Lift Synchrony Financial's Q3 Earnings?
Key Takeaways
Consumer financial services company, Synchrony Financial (SYF - Free Report) , is set to report third-quarter 2026 results on Oct. 20, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.48 per share on revenues of $4.84 billion.
The third-quarter earnings estimate has witnessed three upward revisions and no downward movements over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 13.3%. But the Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 2.6%.
For full-year 2026, the Zacks Consensus Estimate for Synchrony Financial’s revenues is pegged at $19.07 billion, implying an increase of 3.3% year over year. However, the consensus mark for the current year EPS is pegged at $9.40, signaling a decline of around 0.2% on a year-over-year basis.
SYF’s earnings beat the consensus estimate in three of the past four quarters and met once, with the average surprise being 15.5%.
Synchrony Financial Price and EPS Surprise
Synchrony Financial price-eps-surprise | Synchrony Financial Quote
Q3 Earnings Whispers for SYF
Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Synchrony Financial has an Earnings ESP of +5.87% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping SYF’s Q3 Results?
Synchrony Financial is expected to have seen advantages in the third quarter from increased interest-earning assets and higher purchase volumes. Our model predicts interest and fees on loans of $5.6 billion for the quarter, up 1.7% from a year ago. Higher figures from Health & Wellness and Digital are likely to anchor the results.
The consensus mark for total purchase volumes indicates 7% year-over-year growth. The Zacks Consensus Estimate indicates that the total average active accounts are likely to increase 0.7% in the third quarter. SYF is expected to witness a 2.4% increase in average interest-earning assets.
The consensus mark for the net charge-offs ratio is pegged at 5.01, down from 5.16 a year ago. The above-mentioned factors are likely to have benefited the company in the third quarter, positioning it for an earnings beat.
However, Synchrony Financial is expected to have incurred increased information processing and employee costs in the third quarter, partially offsetting the positives. Also, RSA is expected to have increased nearly 10% year over year in the third quarter.
The Zacks Consensus Estimate for net interest margin is pegged at 15.50%, down from 15.62% achieved a year ago, decreasing its profitability.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
Chime Financial, Inc. (CHYM - Free Report) has an Earnings ESP of +4.19% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chime Financial’s bottom line for the to-be-reported quarter is pegged at 9 cents, which indicates 160% year-over-year growth. The consensus estimate for CHYM’s revenues is pegged at $705.2 million, a 29.7% increase from a year ago.
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.49, growth of 41.9% from a year ago. The consensus estimate for VIRT’s revenues is pegged at $604.79 million, a 29.5% year-over-year jump.
Credicorp Ltd. (BAP - Free Report) has an Earnings ESP of +4.71% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Credicorp’s bottom line for the to-be-reported quarter is pegged at $7.51, which indicates 21.7% year-over-year growth. The consensus estimate for BAP’s revenues is pegged at $1.84 billion, an 11.7% increase from a year ago.