Synchrony Financial Analysts Boost Their Forecasts Following Upbeat Q3 Earnings

Synchrony Financial SYF reported better-than-expected third-quarter financial results and raised its FY24 EPS guidance above estimates on Wednesday.

Synchrony Financial reported third-quarter net interest income of $4.609 billion, beating the consensus of $4.491 billion. Net interest income increased 5.7% YoY, driven by higher interest and fees on loans, partially offset by an increase in interest expense from higher benchmark rates and higher interest-bearing liabilities.

Net revenue rose 9.8% to $3.814 billion. Net interest margin declined 32 basis points to 15.04%. Net earnings increased 29% year over year to $789 million. The company reported EPS of $1.94, above the consensus of $1.81.

"The unique combination of Synchrony's industry expertise, proprietary data and analytics, and innovative digital capabilities is powering our trajectory forward, and we believe we are well-positioned to drive sustainable and strong risk-adjusted returns over the long-term," commented Brian Wenzel, Synchrony's Executive Vice President and Chief Financial Officer.

For FY24, Synchrony now expects EPS of $8.45 – $8.55 (prior $7.60 – $7.80) versus the $7.79 consensus; this assumes no late fee rule implementation in 2024.

Synchrony shares fell 0.4% to trade at $56.30 on Thursday.

These analysts made changes to their price targets on Synchrony following earnings announcement.

• Deutsche Bank analyst Mark Devries maintained Synchrony Finl with a Buy and raised the price target from $58 to $68.
• JMP Securities analyst David Scharf maintained the stock with a Market Outperform and raised the price target from $60 to $68.
• Morgan Stanley analyst Betsy Graseck maintained Synchrony Finl with an Underweight and raised the price target from $37 to $40.
• RBC Capital analyst Jon Arfstrom maintained Synchrony Finl with a Sector Perform and raised the price target from $55 to $62.

Considering buying SYF stock? Here’s what analysts think:

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