Preview: Synchrony Finl's Earnings

Synchrony Finl SYF is set to give its latest quarterly earnings report on Tuesday, 2025-04-22. Here's what investors need to know before the announcement.

Analysts estimate that Synchrony Finl will report an earnings per share (EPS) of $1.67.

The market awaits Synchrony Finl's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

Last quarter the company missed EPS by $0.01, which was followed by a 3.17% increase in the share price the next day.

Here's a look at Synchrony Finl's past performance and the resulting price change:

Stock Performance

Shares of Synchrony Finl were trading at $47.87 as of April 18. Over the last 52-week period, shares are up 8.48%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Synchrony Finl

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Synchrony Finl.

The consensus rating for Synchrony Finl is Neutral, based on 9 analyst ratings. With an average one-year price target of $67.11, there's a potential 40.19% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of FirstCash Hldgs and Enova International, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for FirstCash Hldgs, with an average 1-year price target of $137.0, suggesting a potential 186.19% upside.
• Analysts currently favor an Buy trajectory for Enova International, with an average 1-year price target of $134.5, suggesting a potential 180.97% upside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for FirstCash Hldgs and Enova International, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Synchrony Financial ranks in the middle among its peers for Consensus rating. It is at the top for Revenue Growth, indicating strong performance in this area. In terms of Gross Profit, Synchrony Financial is at the top compared to its peers. However, for Return on Equity, it is at the bottom among the group.

About Synchrony Finl

Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).

Unraveling the Financial Story of Synchrony Finl

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Synchrony Finl displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 3.88%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 19.81%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Synchrony Finl's ROE stands out, surpassing industry averages. With an impressive ROE of 5.0%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.63%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.01, Synchrony Finl adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Synchrony Finl visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.