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Synchrony (SYF) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

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Synchrony (SYF - Free Report) reported $4.41 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 5.4%. EPS of $1.55 for the same period compares to $1.32 a year ago.

The reported revenue represents a surprise of -0.82% over the Zacks Consensus Estimate of $4.44 billion. With the consensus EPS estimate being $1.35, the EPS surprise was +14.81%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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: 31.7% versus 34.1% estimated by four analysts on average.
  • Net interest margin: 14.5% compared to the 14.3% average estimate based on four analysts.
  • Total Average Loan receivables, including held for sale: $101.48 billion versus the three-analyst average estimate of $102.66 billion.
  • Net charge-offs as of average loan receivables: 6.4% versus the three-analyst average estimate of 6.3%.
  • Total Purchase Volume: $46.85 billion versus $48.04 billion estimated by three analysts on average.
  • Total Period-end loan receivables: $102.28 billion versus the three-analyst average estimate of $104.12 billion.
  • Total interest-earning assets - Average Balance: $122.55 billion versus $124.35 billion estimated by three analysts on average.
  • Platform Analysis - Digital - Period-end loan receivables: $27.70 billion compared to the $28.38 billion average estimate based on two analysts.
  • Platform Analysis - Home & Auto - Average loan receivables, including held for sale: $32.59 billion versus $32.54 billion estimated by two analysts on average.
  • Platform Analysis - Diversified & Value - Purchase volume: $15.33 billion compared to the $16.13 billion average estimate based on two analysts.
  • Platform Analysis - Diversified & Value - Period-end loan receivables: $19.52 billion versus $20.08 billion estimated by two analysts on average.
  • Platform Analysis - Diversified & Value - Average loan receivables, including held for sale: $19.36 billion versus $19.98 billion estimated by two analysts on average.
View all Key Company Metrics for Synchrony here>>>

Shares of Synchrony have returned +18.5% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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