Zacks: Analysts Expect Synchrony Financial (NYSE:SYF) to Post $1.12 Earnings Per Share

Brokerages expect Synchrony Financial (NYSE:SYF) to announce earnings per share (EPS) of $1.12 for the current fiscal quarter, according to Zacks Investment Research. Four analysts have provided estimates for Synchrony Financial’s earnings. The lowest EPS estimate is $1.09 and the highest is $1.15. Synchrony Financial posted earnings per share of $0.91 in the same quarter last year, which would suggest a positive year-over-year growth rate of 23.1%. The company is scheduled to announce its next quarterly earnings report on Friday, October 18th.

According to Zacks, analysts expect that Synchrony Financial will report full-year earnings of $4.21 per share for the current financial year, with EPS estimates ranging from $4.13 to $4.30. For the next year, analysts forecast that the firm will post earnings of $4.68 per share, with EPS estimates ranging from $4.44 to $4.97. Zacks’ earnings per share averages are an average based on a survey of research analysts that follow Synchrony Financial.

Synchrony Financial (NYSE:SYF) last posted its quarterly earnings results on Friday, July 19th. The financial services provider reported $0.97 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.96 by $0.01. The company had revenue of $4.16 billion for the quarter, compared to analysts’ expectations of $4.19 billion. Synchrony Financial had a return on equity of 19.50% and a net margin of 17.82%. During the same quarter in the prior year, the company earned $0.92 earnings per share.

A number of equities analysts have recently weighed in on SYF shares. Nomura upped their price target on shares of Synchrony Financial from $35.00 to $39.00 and gave the stock a “buy” rating in a research note on Thursday, May 9th. BMO Capital Markets set a $43.00 price objective on shares of Synchrony Financial and gave the stock a “buy” rating in a report on Sunday, July 21st. BTIG Research reiterated a “buy” rating and issued a $42.00 price objective on shares of Synchrony Financial in a report on Monday, July 22nd. Royal Bank of Canada reiterated an “outperform” rating and issued a $39.00 price objective on shares of Synchrony Financial in a report on Friday, May 3rd. Finally, Buckingham Research started coverage on shares of Synchrony Financial in a report on Monday, July 22nd. They issued a “buy” rating and a $42.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and ten have given a buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $38.43.

In related news, insider David P. Melito sold 3,204 shares of the stock in a transaction dated Wednesday, July 10th. The shares were sold at an average price of $36.00, for a total value of $115,344.00. Following the completion of the sale, the insider now owns 23,567 shares in the company, valued at $848,412. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Margaret M. Keane sold 125,000 shares of the stock in a transaction dated Friday, June 14th. The shares were sold at an average price of $33.82, for a total transaction of $4,227,500.00. Following the completion of the sale, the insider now owns 648,901 shares of the company’s stock, valued at approximately $21,945,831.82. The disclosure for this sale can be found here. 0.32% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. NewSquare Capital LLC bought a new position in Synchrony Financial in the second quarter valued at approximately $42,000. Vestmark Advisory Solutions Inc. raised its holdings in shares of Synchrony Financial by 27.4% during the second quarter. Vestmark Advisory Solutions Inc. now owns 10,339 shares of the financial services provider’s stock worth $358,000 after acquiring an additional 2,224 shares during the period. Griffin Asset Management Inc. acquired a new stake in shares of Synchrony Financial during the second quarter worth $91,000. Prudential PLC acquired a new stake in shares of Synchrony Financial during the second quarter worth $325,000. Finally, Point72 Europe London LLP acquired a new stake in shares of Synchrony Financial during the second quarter worth $10,193,000. Institutional investors and hedge funds own 86.62% of the company’s stock.

NYSE:SYF traded up $0.20 during trading hours on Friday, hitting $33.14. 1,000,596 shares of the stock traded hands, compared to its average volume of 4,446,142. The firm has a 50 day moving average price of $35.24 and a 200 day moving average price of $33.59. The company has a current ratio of 1.36, a quick ratio of 1.25 and a debt-to-equity ratio of 1.44. Synchrony Financial has a fifty-two week low of $21.77 and a fifty-two week high of $36.87. The firm has a market cap of $22.18 billion, a price-to-earnings ratio of 8.86, a PEG ratio of 0.77 and a beta of 1.19.

The company also recently declared a quarterly dividend, which was paid on Thursday, August 15th. Shareholders of record on Monday, August 5th were issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 2.66%. This is a boost from Synchrony Financial’s previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Friday, August 2nd. Synchrony Financial’s dividend payout ratio is 23.53%.

About Synchrony Financial

Synchrony Financial operates as a consumer financial services company in the United States. The company offers private label credit cards, dual cards, general purpose co-branded credit cards, and small and medium-sized business credit products; and promotional financing for consumer purchases, such as private label credit cards and installment loans.

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