Consumer financial services company Synchrony Financial (NYSE: SYF) will be reporting results this Wednesday before market open. Here’s what to look for.
Synchrony Financial missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $3.65 billion, down 1.8% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and .
Is Synchrony Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Synchrony Financial’s revenue to be flat year on year at $3.79 billion, slowing from the 9.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Synchrony Financial has missed Wall Street’s revenue estimates six times over the last two years.
With Synchrony Financial being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer finance stocks. However, the whole sector has been hit hard over the last month as stocks in Synchrony Financial’s peer group are down 5.3% on average. Synchrony Financial is down 7.2% during the same time and is heading into earnings with an average analyst price target of $81.65 (compared to the current share price of $70.76).
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