What to Expect From Synchrony Earnings

Banking, finance, and taxes

Published: January 22, 2015 12:50 pm

Last Updated: January 22, 2015 12:53 pm

Synchrony Financial (NYSE: SYF) will report its fourth-quarter results Friday before the market open. Thomson Reuters has consensus estimates of $0.60 in earnings per share and $2.83 billion in revenue. The highest estimates are $0.64 in earnings per share and $3.17 billion in revenue.

Synchrony is currently in the middle of a spin-off, forming a new company separate from General Electric Co. (NYSE: GE). The spin-off is expected to be completed this year.

A little background about the company: It has logged over 80 years of experience in consumer finance and is one of the largest providers of private label credit cards in the United States, based on purchase volume and receivables. The company provides a range of credit products with a diverse group of national and regional retailers.

As earnings approach, Synchrony renewed its installment lending program with Yamaha Motor. Ultimately it will provide consumer financing at 1,700 Yamaha dealers across the United States. Since the program was started in 2004, it has provided financing for over $2 billion in Yamaha products.

ALSO READ: After Earnings, Which Big Bank Stock Is Cheapest?

Synchrony also is investing in GPShopper, which develops mobile apps focused on the retail industry. This will complement the company’s current mobile offerings of account acquisition, management and reward redemption. The end game for this investment is to align with the needs of retail partners and consumers by building on its mobile platform.

Two firms weighed in on Synchrony in January. BTIG Research reiterated a Neutral rating with a price target of $30. Evercore ISI initiated coverage of Synchrony with a $35 price target. This is currently the highest listed price target for the stock, implying an upside of 20% from Wednesday’s close.

The 50-day moving average is currently $29.27. Shares have only dipped below that average in the past week but they are currently testing it ahead of earnings. There is no 200-day moving average as the company has only been public since the end of July.

Shares of Synchrony were flat at $24.12 midday on Thursday. The stock has a consensus analyst price target of $31.40 and a 52-week trading range of $22.60 to $30.64. Synchrony has a market cap of $24 billion.

ALSO READ: The Bullish and Bearish Case for GE in 2015

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%¹ today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

¹https://www.fdic.gov/national-rates-and-rate-caps