Zacks: Brokers expect Synchrony Financial (NYSE:SYF) to post EPS of $1.53
Wall Street analysts expect Synchrony Financial (NYSE: SYF – Get a rating) will report earnings per share of $1.53 for the current fiscal quarter, Zacks reports. Fourteen analysts provided earnings estimates for Synchrony Financial, with the highest EPS estimate of $1.77 and the lowest estimate of $1.32. Synchrony Financial reported earnings of $1.73 per share in the same quarter last year, indicating a negative 11.6% year-over-year growth rate. The company is expected to release its next quarterly results before the market opens on Monday, January 1.
On average, analysts expect Synchrony Financial to report annual earnings of $5.66 per share for the current fiscal year, with EPS estimates ranging from $5.27 to $6.20. For the next fiscal year, analysts expect the company to post earnings of $5.77 per share, with EPS estimates ranging from $5.20 to $6.48. Zacks earnings per share averages are an average based on a survey of sell-side research firms that provide coverage for Synchrony Financial.
Synchrony Financial (NYSE: SYF – Get a rating) last released its results on Friday, January 28. The financial services provider reported earnings per share of $1.48 for the quarter, beating the Zacks consensus estimate of $1.47 by $0.01. Synchrony Financial had a net margin of 27.27% and a return on equity of 30.77%. The company posted revenue of $3.83 billion for the quarter, versus analyst estimates of $2.60 billion. In the same quarter a year earlier, the company posted EPS of $1.24.
A number of equity research analysts have weighed in on the stock recently. Barclays raised its price target on Synchrony Financial shares from $63.00 to $64.00 in a Monday, January 10 report. StockNews.com began covering Synchrony Financial shares in a research report on Thursday, March 31. They issued a “holding” rating for the company. BMO Capital Markets cut its price target on Synchrony Financial shares from $54.00 to $50.00 and set an “outperform” rating for the company in a Monday, January 31 research report. Credit Suisse Group cut its price target on Synchrony Financial shares from $60.00 to $58.00 and set an “outperform” rating for the company in a Monday, January 31 research report. Finally, JPMorgan Chase & Co. cut its price target on Synchrony Financial shares from $55.00 to $51.00 in a Wednesday, January 19 research report. Nine analysts rated the stock with a hold rating and thirteen gave the company a buy rating. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $52.53.
In related news, insider David P. Melito sold 9,351 shares of the company in a transaction that took place on Thursday, January 27. The shares were sold at an average price of $46.05, for a total transaction of $430,613.55. The sale was disclosed in a legal filing with the SEC, accessible via this hyperlink. Company insiders own 0.45% of the company’s shares.
Hedge funds have recently changed their positions in the stock. International Assets Investment Management LLC acquired a new stake in Synchrony Financial in Q3 for approximately $104,000. Dynamic Advisor Solutions LLC increased its stake in Synchrony Financial by 19.8% in the third quarter. Dynamic Advisor Solutions LLC now owns 8,436 shares of the financial services provider worth $412,000 after buying 1,392 additional shares in the last quarter. Signaturefd LLC increased its stake in Synchrony Financial by 3.9% in the third quarter. Signaturefd LLC now owns 6,904 shares of the financial services provider worth $337,000 after buying 261 additional shares in the last quarter. Vontobel Holding SA increased its stake in Synchrony Financial by 69.9% in the third quarter. Vontobel Holding Ltd. now owns 334,184 shares of the financial services provider worth $16,334,000 after purchasing an additional 137,447 shares last quarter. Lastly, Banque Cantonale Vaudoise increased its stake in Synchrony Financial by 3.3% in the third quarter. Banque Cantonale Vaudoise now owns 31,100 shares of the financial services provider worth $1,521,000 after buying an additional 1,000 shares last quarter. Institutional investors hold 93.86% of the company’s shares.
Shares of SYF traded down $0.23 on Friday, hitting $37.70. The company’s stock had a trading volume of 6,644,318 shares, compared to an average trading volume of 7,160,251 shares. The company has a current ratio of 1.25, a quick ratio of 1.19 and a debt ratio of 1.12. Synchrony Financial has a 12-month low of $33.76 and a 12-month high of $52.49. The stock has a market capitalization of $19.08 billion, a PE ratio of 5.14, a PEG ratio of 0.29 and a beta of 1.60. The company has a fifty-day moving average of $38.66 and a 200-day moving average of $44.42.
The company also recently declared a quarterly dividend, which was paid on Tuesday, February 15. Investors of record on Thursday, February 10 received a dividend of $0.22 per share. This represents a dividend of $0.88 on an annualized basis and a dividend yield of 2.33%. The ex-dividend date was Wednesday, February 9. Synchrony Financial’s payout ratio is currently 12.01%.
About Synchrony Financial (Get a rating)
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products and consumer installment loans. The company also offers private label credit cards, dual cards, co-branded and general purpose credit cards, short and long term installment loans and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts for retail and commercial customers, as well as deposits through brokerage firms in third-party securities.
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