Synchrony Financial's Q3 net earnings fall 17%

Synchrony Financial

Tue 11:07

Overview
US consumer finance firm's Q3 net earnings fell 17% yr/yr to $892 mln
Net interest income for Q3 rose 2% to $4.8 bln, driven by higher loan receivables
Company returned $1.2 bln in capital to shareholders via buybacks and dividends

Outlook
Synchrony did not provide specific financial guidance for the current or upcoming periods in the press release

Result Drivers
HIGHER LOAN RECEIVABLES - Net interest income rose 2% to $4.8 bln, driven by growth in average loan receivables
CREDIT LOSS PROVISION - Provision for credit losses increased 10% to $1.3 bln, contributing to lower net earnings
PURCHASE VOLUME GROWTH - Purchase volume increased 8% to $49.7 bln, with broad-based growth across sales platforms

Company press release: Full Story

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$2.68
 
Q3 Net Income
 
$892 mln
 
Q3 Net Interest Income
 
$4.80 bln
 
Q3 Credit Loss Provision
 
$1.3 bln
 
Q3 ROCE
 
21.00%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "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 $88.00, about 18.5% above its October 19 closing price of $74.24
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Press Release https://d1io3yog0oux5.cloudfront.net/_6e29633e7bb343c6df300320734a9d53/synchrony/db/3606/34034/earnings_release/Earnings+Press+Release+with+Financial+Tables+%283Q%2726%29.pdf
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)