Core Viewpoint - Synchrony (SYF) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 22, with a consensus estimate of $1.70 per share, reflecting a year-over-year increase of +9.7%. Revenues are projected to be $4.5 billion, up 2.2% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.59% over the last 30 days, indicating a reassessment by analysts [4]. The Most Accurate Estimate for Synchrony is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +6.05% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9][10]. Synchrony's current Zacks Rank is 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Synchrony exceeded the expected earnings of $1.63 per share by delivering $1.89, resulting in a surprise of +15.95%. The company has beaten consensus EPS estimates in all of the last four quarters [12][13]. Conclusion - Synchrony is positioned as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just the earnings report [16].

Core Insights - Synchrony has partnered with Babes in the Dirt as the official financing partner for the 2025 Off-Road Adventure Series, aiming to support women's participation in powersports [1][2][4] - Babes in the Dirt is the largest network for women off-roaders in the US, established to transform the powersports industry and promote inclusivity [3][9] - Women are the fastest-growing segment in the powersports market, highlighting a significant opportunity for growth and engagement [2][3] Company Overview - Synchrony is a leading consumer financial services company, providing access to credit and banking products for nearly 100 years, serving tens of millions of people [6] - KTM North America, a subsidiary of KTM AG, is recognized as Europe's leading high-performance motorcycle manufacturer, known for its competitive edge in the powersports industry [7][8] Event Sponsorship and Impact - Synchrony will facilitate financing for motorcycle sales, parts, garments, and accessories through Babes in the Dirt, addressing the needs of attendees who intend to purchase motorcycles [4] - In 2024, 23% of attendees at Babes in the Dirt events did not own a motorcycle but planned to buy one, indicating a strong demand for financing options [4] Mission and Goals - Babes in the Dirt aims to create a supportive environment for women in the powersports community, encouraging participation and adventure [5][9] - The collaboration with Synchrony and KTM is designed to enhance accessibility to motorcycles and related services for aspiring women riders [5][6]

Core Insights - Synchrony Financial (SYF) has partnered with Payzer to create an integrated digital solution aimed at enhancing financing options for residential contractors [1][8] - The collaboration allows contractors to offer financing during estimates, manage pre-qualifications, and receive instant credit decisions through a single interface, potentially increasing transaction values and speeding up payment timelines [2][8] - The partnership aligns with the growing consumer interest in Buy Now Pay Later (BNPL) options and home equity solutions, positioning both companies to meet evolving financial needs [3][4] Company Strategy - Synchrony is focusing on expanding its presence in the home service sector while enhancing its digital capabilities and diversified offerings through partnerships and acquisitions [4] - The collaboration with Payzer is expected to increase market reach, particularly among mid-sized contractors who may lack access to advanced financial tools [4][8] Market Performance - Over the past year, Synchrony shares have increased by 36.8%, significantly outperforming the industry growth of 9.5% [5]

Core Insights - Synchrony has been recognized as the No. 1 on the 2025 Fortune Best Workplaces in New York List by Great Place To Work, highlighting its commitment to trust, flexibility, and innovation in the workplace [1][5] - The company operates an NYC Innovation Hub that fosters collaboration and innovation among employees, enhancing the overall work environment [2][4] - Synchrony serves a significant portion of the U.S. population, providing financing solutions to 1 in 4 U.S. adults, thereby playing a crucial role in American commerce [3][6] Company Overview - Synchrony is a leading consumer financing company that has been in operation for nearly 100 years, offering credit and banking products to support healthier financial lives for tens of millions of people [6] - The company employs over 800 individuals in the Tri-State area, with a strong focus on employee growth, development, and a people-first philosophy [5][6] - Synchrony has achieved national recognition as well, ranking No. 2 on the 2025 list of Best Companies to Work For in the U.S. [5][6] Workplace Culture - The recognition as the Best Workplace in New York underscores the importance of a great employee experience built on trust and flexibility, as emphasized by the Executive Vice President and Chief Human Resources Officer [4] - The Innovation Hub, opened in 2022, reflects Synchrony's commitment to creating collaborative workspaces that attract top talent in the New York metropolitan area [4][5] - The company’s workplace culture is designed to empower employees to work in ways that suit them best, ultimately delivering results that matter to both individuals and businesses [4] Methodology and Recognition - The rankings for the 2025 Fortune Best Workplaces in New York were based on feedback from nearly 145,000 employees at eligible companies, surveyed as part of a larger pool of 1.3 million employees [7][8] - Companies must be Great Place To Work Certified, have at least 10 U.S. employees, and be headquartered in the New York region to be eligible for the rankings [8]

Core Insights - Synchrony Financial (SYF) has partnered with OnePay and Walmart to launch a new credit card program aimed at enhancing customer engagement and sales growth [1][8] - The program will feature two credit card options: a general-purpose card usable anywhere Mastercard is accepted and a private-label card exclusive to Walmart purchases [2][8] - The initiative is expected to strengthen customer relationships and generate attractive risk-adjusted returns for Synchrony [3] Financial Performance - Increased credit card utilization is projected to boost interest income for SYF, contributing to higher net interest income, which grew by 1.3% year-over-year in Q1 2025 [4] - SYF's share price has appreciated by 42.6% over the past year, significantly outperforming the industry average growth of 12.1% [7] Competitive Landscape - Competitors American Express (AXP) and Capital One (COF) have also seen growth in net interest income, with year-over-year increases of 11% and 7% respectively in Q1 [5][6] Valuation and Estimates - SYF is currently trading at a forward price-to-earnings ratio of 7.46, which is lower than the industry average of 18.62, indicating an attractive valuation [10] - Earnings estimates for SYF have been revised upward, with projections for 2025 increasing by 1.1% to $7.68 per share and for 2026 by 1.6% to $8.74 [11][13]

Core Viewpoint - The article highlights the importance of value investing and identifies Guild (GHLD) and Synchrony Financial (SYF) as strong value stock picks based on their financial metrics and Zacks Rank ratings [4][8]. Group 1: Guild (GHLD) - GHLD has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock's P/E ratio is 7.97, significantly lower than the industry average of 18.71, suggesting it may be undervalued [4]. - GHLD's PEG ratio is 0.75, compared to the industry's average of 1.07, indicating favorable growth expectations relative to its price [5]. - The P/S ratio for GHLD is 0.89, while the industry average is 1.81, further supporting the notion of undervaluation [6]. - GHLD's P/CF ratio stands at 10.63, compared to the industry's average of 21.04, reflecting a strong cash flow outlook [7]. Group 2: Synchrony Financial (SYF) - SYF is rated 2 (Buy) with a Value Score of A, making it another attractive option for value investors [8]. - The Forward P/E ratio for SYF is 7.28, significantly lower than the industry average of 18.71, indicating potential undervaluation [8]. - SYF's PEG ratio is 0.58, which is also lower than the industry average of 1.07, suggesting strong growth prospects relative to its price [8]. - The P/B ratio for SYF is 1.47, compared to the industry's price-to-book ratio of 3.49, indicating a favorable valuation [9].

Synchrony Financial (NYSE:SYF) Morgan Stanley US Financials, Payments & CRE Conference 2025 June 10, 2025 8:15 AM ET Company Participants Brian J. Wenzel - Executive VP & CFO Conference Call Participants Jeffrey David Adelson - Morgan Stanley, Research Division Jeffrey David Adelson All right, everybody. Before we get started, I'm going to read some quick disclosures. For important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures. The taking of ...

Summary of Synchrony Financial (SYF) 2025 Conference Call Company Overview - **Company**: Synchrony Financial (SYF) - **Date of Conference**: June 10, 2025 - **Key Speaker**: Brian Wenzel, Chief Financial Officer Industry Context - The call addressed the evolving credit environment post-pandemic, regulatory changes, and rising consumer delinquencies across the industry [3][4] - Synchrony is focusing on enhancing its digital capabilities and maintaining competitive advantages in a challenging market [5][6] Core Points and Arguments 1. **Business Positioning and Strategy**: - Synchrony has invested heavily in digital capabilities and advanced underwriting platforms to meet customer needs [5][6] - The company aims to extend partnerships and maintain pricing discipline while capturing market share [6][7][8] 2. **Walmart Partnership**: - Synchrony announced a new partnership with Walmart, emphasizing a fresh start with a de novo book, which is expected to have a different loss profile and richer value proposition compared to previous offerings [9][11][15] - The partnership aims to leverage Walmart's scale to potentially become a top five or top ten program in terms of receivables [19][20] 3. **Consumer Spending Trends**: - There has been a moderation in discretionary spending, but Synchrony has not observed significant changes in consumer behavior despite concerns over tariffs [21][22][27] - Positive signs of stabilization in average transaction values were noted, particularly in soft goods [23][24] 4. **Credit Performance**: - Synchrony has seen higher delinquencies but has performed better than peers, with a long-term guidance range for losses set at 5.5% to 6% [29][30] - The company attributes its performance to advanced underwriting practices and a disciplined credit strategy [30][32][34] 5. **Reserve Ratios and Economic Outlook**: - The company is optimistic about improving credit performance, which may lead to a downward trend in reserve ratios if the macroeconomic environment stabilizes [44][50] - Synchrony is prepared to adjust its credit profile based on performance and economic conditions [51][56] 6. **Capital Return Strategy**: - Synchrony increased its dividend by 20% and announced a $2.5 billion share buyback, reflecting strong capital levels and a commitment to returning value to shareholders [74][75][78] - The company prioritizes organic growth and maintaining dividends while remaining open to potential acquisitions [76][78] Additional Important Insights - The competitive landscape is evolving, with some larger banks exiting certain markets and smaller fintech lenders entering [69][71][73] - Synchrony is focused on maintaining a balanced approach to competition, emphasizing the importance of partnerships and product offerings [72][73] - The company is methodically engaging with partners regarding pricing changes and promotional financing strategies to stimulate growth [61][66][67] This summary encapsulates the key points discussed during the Synchrony Financial conference call, highlighting the company's strategic direction, market positioning, and outlook for the future.

Core Viewpoint - Walmart's fintech startup OnePay is launching two credit card products in partnership with Synchrony, marking a strategic shift from its previous exclusive relationship with Capital One Financial [1][3]. Group 1: Partnership and Product Launch - OnePay is collaborating with Synchrony to issue credit cards, with Synchrony handling credit card issuance and credit approval starting this fall [1]. - The two new credit card products include a general credit card accepted at Mastercard locations and a store card limited to Walmart purchases [3]. - OnePay aims to provide a transparent, affordable, and user-friendly service experience through this credit card initiative [3]. Group 2: Background and Market Context - Since 2018, Walmart relied on Capital One as its exclusive credit card provider but filed a lawsuit against them in 2023 to terminate the partnership early [1]. - At the time of the partnership termination, Walmart's credit card program had 10 million active users and an outstanding loan balance of approximately $8.5 billion [1]. - OnePay is expanding its product offerings to create a one-stop financial service platform for underserved populations in the U.S., which now includes debit cards, high-yield savings accounts, and a digital wallet [3].

Synchrony to become exclusive issuer of OnePay credit cards at Walmart, with the credit card experience embedded inside the OnePay app The program will add credit cards to OnePay’s growing portfolio of financial services products, helping consumers save, spend, borrow, and grow their money — all in one place NEW YORK and STAMFORD, Conn., June 09, 2025 (GLOBE NEWSWIRE) -- OnePay, a leading consumer fintech, and Synchrony (NYSE: SYF), a premier consumer financial services company, today announced a strategic ...