The upcoming report from Synchrony (SYF) is expected to reveal quarterly earnings of $2.20 per share, indicating an increase of 13.4% compared to the year-ago period. Analysts forecast revenues of $4.69 billion, representing an increase of 1.8% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain Synchrony metrics that are commonly tracked and forecasted by Wall Street analysts.
Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 32.1%. The estimate is in contrast to the year-ago figure of 31.2%.
Analysts expect 'Net interest margin' to come in at 15.4%. The estimate is in contrast to the year-ago figure of 15.0%.
Analysts forecast 'Net charge-offs as of average loan receivables' to reach 5.4%. The estimate compares to the year-ago value of 6.1%.
The consensus estimate for 'Total Average Loan receivables, including held for sale' stands at $100.34 billion. Compared to the present estimate, the company reported $102.01 billion in the same quarter last year.
The consensus among analysts is that 'Total Purchase Volume' will reach $44.97 billion. The estimate compares to the year-ago value of $44.99 billion.
The collective assessment of analysts points to an estimated 'Total Period-end loan receivables' of $100.74 billion. Compared to the present estimate, the company reported $102.19 billion in the same quarter last year.
The average prediction of analysts places 'Total interest-earning assets - Average Balance' at $121.71 billion. The estimate is in contrast to the year-ago figure of $121.91 billion.
It is projected by analysts that the 'Platform Analysis - Digital - Period-end loan receivables' will reach $27.97 billion. The estimate is in contrast to the year-ago figure of $27.77 billion.
The combined assessment of analysts suggests that 'Platform Analysis - Home & Auto - Average loan receivables, including held for sale' will likely reach $30.66 billion. Compared to the current estimate, the company reported $32.61 billion in the same quarter of the previous year.
Analysts predict that the 'Platform Analysis - Diversified & Value - Purchase volume' will reach $15.27 billion. Compared to the current estimate, the company reported $14.99 billion in the same quarter of the previous year.
According to the collective judgment of analysts, 'Platform Analysis - Diversified & Value - Period-end loan receivables' should come in at $19.49 billion. Compared to the current estimate, the company reported $19.47 billion in the same quarter of the previous year.
Analysts' assessment points toward 'Platform Analysis - Diversified & Value - Average loan receivables, including held for sale' reaching $19.48 billion. Compared to the current estimate, the company reported $19.41 billion in the same quarter of the previous year.
View all Key Company Metrics for Synchrony here>>>
Over the past month, Synchrony shares have recorded returns of -6.6% versus the Zacks S&P 500 composite's +3.5% change. Based on its Zacks Rank #3 (Hold), SYF will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Synchrony Financial (SYF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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