Zacks: Brokerages expect Synchrony Financial (NYSE:SYF) to post $1.44 a share profit
Wall Street analysts predict that Synchrony Financial (NYSE: SYF – Get a rating) will post earnings per share (EPS) of $1.44 for the current fiscal quarter, according to Zacks. Fifteen analysts have made earnings estimates for Synchrony Financial, with estimates ranging from $1.18 to $2.24. Synchrony Financial posted earnings per share of $2.12 in the same quarter last year, indicating a negative growth rate of 32.1% year-over-year. The company is expected to release its next results on Monday, January 1.
On average, analysts expect Synchrony Financial to report full year earnings of $5.77 per share for the current fiscal year, with EPS estimates ranging from $5.41 to $6.26. For the next fiscal year, analysts expect the company to report earnings of $5.80 per share, with EPS estimates ranging from $5.21 to $6.48. Zacks earnings per share calculations are an average average based on a survey of research firms that provide coverage for Synchrony Financial.
Synchrony Financial (NYSE: SYF – Get a rating) last released its results on Monday, April 18. The financial services provider reported earnings per share (EPS) of $1.77 for the quarter, beating the consensus estimate of $1.54 by $0.23. Synchrony Financial had a return on equity of 29.99% and a net margin of 26.26%. In the same quarter of the previous year, the company had earned earnings per share of $1.73.
Several analysts have recently released reports on SYF shares. BMO Capital Markets raised its price target on Synchrony Financial from $49.00 to $52.00 and gave the stock an “outperform” rating in a Tuesday, April 19 research report. Credit Suisse Group cut its price target on Synchrony Financial from $60.00 to $58.00 and set an “outperform” rating for the company in a Monday, January 31 report. Morgan Stanley upgraded Synchrony Financial from an “overweight” rating to an “equally weighted” rating and reduced its price target for the company from $56.00 to $40.00 in a Monday, March 28 report. StockNews.com began covering Synchrony Financial in a report on Thursday, March 31. They set a “holding” rating for the company. Finally, Bank of America reduced its price target on Synchrony Financial from $52.00 to $45.00 in a Thursday, March 17 report. Seven analysts gave the stock a hold rating and thirteen gave the company a buy rating. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $52.89.
NYSE: SYF opened at $38.05 on Friday. The company has a current ratio of 1.24, a quick ratio of 1.18 and a debt ratio of 1.05. Synchrony Financial has a 12-month low of $33.76 and a 12-month high of $52.49. The stock has a 50-day moving average price of $37.21 and a 200-day moving average price of $43.25. The stock has a market capitalization of $19.08 billion, a P/E ratio of 5.16, a P/E/G ratio of 0.30 and a beta of 1.43.
Synchrony Financial announced that its board of directors launched a share repurchase program on Monday, April 18 that sees the company repurchase $2.80 billion worth of stock. This repurchase authorization allows the financial services provider to repurchase up to 13.6% of its shares through purchases on the open market. Stock buyback programs are often a sign that a company’s board believes its stock is undervalued.
The company also recently declared a quarterly dividend, which will be paid on Thursday, May 12. Investors of record on Monday, May 2 will receive a dividend of $0.22 per share. This represents a dividend of $0.88 on an annualized basis and a dividend yield of 2.31%. The ex-dividend date is Friday, April 29. Synchrony Financial’s dividend payout ratio is currently 11.94%.
Hedge funds have recently changed their stock holdings. CVA Family Office LLC purchased a new stake in shares of Synchrony Financial during Q4 for a value of approximately $30,000. Blue Bell Private Wealth Management LLC purchased a new stake in Synchrony Financial during Q4 for $30,000. Quent Capital LLC purchased a new stake in Synchrony Financial during Q4 for $31,000. Spire Wealth Management increased its position in Synchrony Financial by 1,219.7% during the fourth quarter. Spire Wealth Management now owns 871 shares of the financial services provider valued at $40,000 after buying an additional 805 shares last quarter. Finally, Evolution Wealth Advisors LLC increased its position in Synchrony Financial by 143.1% during the 3rd quarter. Evolution Wealth Advisors LLC now owns 919 shares of the financial services provider valued at $45,000 after buying an additional 541 shares in the last quarter. 98.26% of the shares are held by hedge funds and other institutional investors.
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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