Synchrony (SYF) Reports Q3 Earnings: What Key Metrics Have to Say
For the quarter ended September 2023, Synchrony (SYF) reported revenue of $4.36 billion, up 11.1% over the same period last year. EPS came in at $1.48, compared to $1.47 in the year-ago quarter.
The reported revenue represents a surprise of +1.58% over the Zacks Consensus Estimate of $4.29 billion. With the consensus EPS estimate being $1.44, the EPS surprise was +2.78%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Synchrony performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 33.2% versus the six-analyst average estimate of 34.6%.
Net interest margin: 15.4% versus the six-analyst average estimate of 15.1%.
Net charge-offs as of average loan receivables: 4.6% versus the five-analyst average estimate of 4.8%.
Total interest-earning assets - Average Balance: $112.69 billion versus the five-analyst average estimate of $112.23 billion.
Total Purchase Volume: $47.01 billion versus $46.67 billion estimated by three analysts on average.
Total Period-end loan receivables: $97.87 billion versus the three-analyst average estimate of $97.62 billion.
Tier 1 Risk-based Capital Ratio: 13.2% compared to the 13.1% average estimate based on three analysts.
Platform Analysis - Digital - Period-end loan receivables: $26.69 billion compared to the $26.68 billion average estimate based on two analysts.
Platform Analysis - Home & Auto - Average loan receivables, including held for sale: $31.24 billion compared to the $31.49 billion average estimate based on two analysts.
Platform Analysis - Diversified & Value - Purchase volume: $15.45 billion versus $15.81 billion estimated by two analysts on average.
Platform Analysis - Diversified & Value - Period-end loan receivables: $18.87 billion versus the two-analyst average estimate of $18.96 billion.
Platform Analysis - Diversified & Value - Average loan receivables, including held for sale: $18.57 billion versus the two-analyst average estimate of $18.66 billion.
View all Key Company Metrics for Synchrony here>>>
Shares of Synchrony have returned -8.9% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Synchrony Financial (SYF) : Free Stock Analysis Report
