SYF Earnings Prediction
The chart below shows how SYF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SYF sees a -4.64% change in stock price 10 days leading up to the earnings, and a +0.64% change 10 days following the report. On the earnings day itself, the stock moves by +0.92%. This data can give you a slight idea of what to expect for the next quarter's release.
SYF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.74B
3.00%
-0.23%
Gross Margin
--
--
--
Operating Margin
21.00%
59.33%
-5.28%
Net Margin
16.32%
70.89%
-1.69%
EPS
1.91
85.44%
-1.55%
No Data Available
SYF Earnings Analysis
Synchrony Financial Corporation (SYF.N) Earnings Conference Call
Positive
Customer Growth Surge: Added 5 million new accounts in Q4 2024, contributing to a total of nearly 20 million new accounts for the year, demonstrating strong customer growth.
Record Purchase Volume Achieved: Generated $48 billion in purchase volume in Q4 2024, marking the second highest level of purchase volume in the company's history, reflecting robust demand for financing solutions.
Net Earnings Performance: Achieved net earnings of $350 million for the full year 2024, translating to $8.55 per diluted share, with a return on average assets of 2.9% and a return on tangible common equity of 27.5%.
Capital Strength and Returns: Maintained a strong capital position with a CET1 ratio of 13.3%, significantly above the previous year's 12.2%, and returned $197 million to shareholders through share repurchases and dividends in 2024.
Partnership Expansion and Innovation: Successfully renewed and extended partnerships with major brands like Sam's Club and J.C. Penney, enhancing the product offerings with new financing solutions such as Synchrony Pay Later, which is expected to drive future growth.
Negative
Decline in Purchase Volume: Purchase volume growth ranged between down 1% and down 6% year over year, reflecting lower spend per account as customers moderated both bigger ticket and discretionary spend, particularly in categories like furniture, electronics, cosmetic and outdoor.
Net Charge Off Rate Increase: The net charge off rate was 6.45% in the fourth quarter, an increase of 87 basis points from 5.58% in the prior year and 96 basis points above the historical average from 2019.
Delinquency Rate Increase: The 90 plus delinquency rate was 2.4%, an increase of 12 basis points from 2.28% in the prior year and 16 basis points above the historical average from 2019.
Decline in Payment Rates: Payment rates continued to moderate down approximately 10 basis points compared to last year, indicating a decline in customer repayment behavior.
Credit Loss Provision Decrease: Provision for credit losses decreased to $160 million, primarily reflecting a $100 million reserve release compared to a reserve build of $402 million in the prior year, indicating a deterioration in credit quality despite the release.
SYF FAQs
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SYF Earning Call Sentiment
Earnings call transcript: Synchrony Financial Q4 2024 earnings beat estimates
SYF.N
1.52%Positive
The earnings call highlights strong financial performance with increased net revenue, net interest income, and profitability metrics like ROTCE. Despite some credit quality challenges, the improved efficiency ratio and strong capital management are positives. Shareholder returns are substantial, and the strategic partnerships indicate growth potential. The Q&A showed management's confidence in navigating market uncertainties, though some concerns about credit quality remain. Overall, the optimistic guidance and strong financials suggest a positive stock price movement over the next two weeks.
