Synchrony Financial (SYF) Q4 Earnings Report Preview: What To Look For

Consumer financial services company Synchrony Financial (NYSE:SYF) will be reporting results this Tuesday before the bell. Here’s what to expect.

Synchrony Financial beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $3.82 billion, flat year on year. It was a very 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 grow 1.3% year on year to $3.85 billion, slowing from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 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 five times over the last two years.

Looking at Synchrony Financial’s peers in the consumer finance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Capital One delivered year-on-year revenue growth of 53.3%, beating analysts’ expectations by 0.9%, and Sallie Mae reported revenues up 16.4%, topping estimates by 1%. Capital One traded down 8.4% following the results while Sallie Mae was up 6.2%.

Read our full analysis of Capital One’s results here and Sallie Mae’s results here.

Investors in the consumer finance segment have had steady hands going into earnings, with share prices flat over the last month. Synchrony Financial is down 9.6% during the same time and is heading into earnings with an average analyst price target of $92.61 (compared to the current share price of $76.06).

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