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Countdown to Synchrony (SYF) Q4 Earnings: Wall Street Forecasts for Key Metrics

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Wall Street analysts expect Synchrony (SYF - Free Report) to post quarterly earnings of $1.90 per share in its upcoming report, which indicates a year-over-year increase of 84.5%. Revenues are expected to be $4.57 billion, up 2.2% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Bearing this in mind, let's now explore the average estimates of specific Synchrony metrics that are commonly monitored and projected by Wall Street analysts.

Analysts predict that the 'Efficiency Ratio' will reach 34.8%. The estimate compares to the year-ago value of 36%.

Based on the collective assessment of analysts, 'Net interest margin' should arrive at 14.7%. Compared to the current estimate, the company reported 15.1% in the same quarter of the previous year.

The average prediction of analysts places 'Total Average Loan receivables, including held for sale' at $102.83 billion. Compared to the current estimate, the company reported $99.68 billion in the same quarter of the previous year.

The consensus among analysts is that 'Net charge-offs as of average loan receivables' will reach 6.3%. The estimate is in contrast to the year-ago figure of 5.6%.

Analysts' assessment points toward 'Total Purchase Volume' reaching $47.73 billion. Compared to the present estimate, the company reported $49.34 billion in the same quarter last year.

The collective assessment of analysts points to an estimated 'Total Period-end loan receivables' of $104.86 billion. The estimate is in contrast to the year-ago figure of $102.99 billion.

The combined assessment of analysts suggests that 'Total interest-earning assets - Average Balance' will likely reach $125.01 billion. The estimate is in contrast to the year-ago figure of $117.34 billion.

According to the collective judgment of analysts, 'Platform Analysis - Digital - Period-end loan receivables' should come in at $29.19 billion. Compared to the current estimate, the company reported $28.93 billion in the same quarter of the previous year.

It is projected by analysts that the 'Platform Analysis - Home & Auto - Average loan receivables, including held for sale' will reach $32.49 billion. Compared to the present estimate, the company reported $31.72 billion in the same quarter last year.

Analysts forecast 'Platform Analysis - Diversified & Value - Purchase volume' to reach $16.63 billion. Compared to the current estimate, the company reported $16.99 billion in the same quarter of the previous year.

Analysts expect 'Platform Analysis - Diversified & Value - Period-end loan receivables' to come in at $20.65 billion. Compared to the present estimate, the company reported $20.67 billion in the same quarter last year.

The consensus estimate for 'Platform Analysis - Diversified & Value - Average loan receivables, including held for sale' stands at $19.93 billion. The estimate is in contrast to the year-ago figure of $19.42 billion.

View all Key Company Metrics for Synchrony here>>>

Synchrony shares have witnessed a change of +5.8% in the past month, in contrast to the Zacks S&P 500 composite's +2.7% move. With a Zacks Rank #3 (Hold), SYF is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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