Synchrony Financial Q3 net earnings rises 37%, co announces $1bln share buyback
Overview
Synchrony Financial Q3 net earnings rise 37% to $1.1 bln, driven by improved credit grades
Net interest income for Q3 increased 2% to $4.7 bln, reflecting lower interest costs
Company announces $1 bln share repurchase authorization, showing financial confidence
Outlook
Synchrony authorized $1.0 bln in share repurchases through June 30, 2026
Result Drivers
PURCHASE VOLUME GROWTH - Driven by stronger spending trends across all platforms and improved credit performance, per CEO Brian Doubles
NET INTEREST INCOME - Increased by 2% to $4.7 bln, primarily due to lower interest costs, contributing to higher retailer share arrangements
CREDIT LOSS PROVISION - Decreased to $1.1 bln, driven by lower net charge-offs and a reserve release
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $3.82 bln | ||
Q3 EPS | $2.86 | ||
Q3 Net Income | $1.10 bln | ||
Q3 Net Interest Income | $4.70 bln | ||
Q3 Credit Loss Provision | $1.10 bln | ||
Q3 ROCE | 25.10% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Synchrony Financial is $82.50, about 11.7% above its October 14 closing price of $72.84
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
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