Synchrony (SYF) Tops Q2 Earnings and Revenue Estimates

Core Insights - Synchrony (SYF) reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $1.72 per share, and up from $1.55 per share a year ago, representing an earnings surprise of +45.35% [1] - The company achieved revenues of $4.52 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.46% and showing an increase from $4.41 billion year-over-year [2] - Synchrony has consistently surpassed consensus EPS estimates over the last four quarters, with a total of four earnings surprises [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.14 on revenues of $4.68 billion, while for the current fiscal year, the estimate is $7.76 on revenues of $18.47 billion [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for understanding future stock movements [3][4] Industry Context - Synchrony operates within the Zacks Financial - Miscellaneous Services industry, which is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Synchrony’s stock may also be affected by the overall industry trends, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8] Stock Performance - Synchrony shares have increased by approximately 6.8% since the beginning of the year, compared to a 7.2% gain in the S&P 500 [3] - The current Zacks Rank for Synchrony is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]