Synchrony Financial (NYSE:SYF) will release earnings results for the third quarter, before the opening bell on Wednesday, Oct. 15.Analysts expect the Stamford, Connecticut-based company to report quarterly earnings at $2.22 per share, up from $1.94 per share in the year-ago period. Synchrony Financial projects quarterly revenue of $3.8 billion, compared to $3.81 billion a year earlier, according to data from Benzinga Pro.On Sept. 29, Synchrony named Deborah Ellinger to its board of directors.Synchrony Finan ...

Synchrony Financial (NYSE:SYF) will release earnings results for the third quarter, before the opening bell on Wednesday, Oct. 15.Analysts expect the Stamford, Connecticut-based company to report quarterly earnings at $2.22 per share, up from $1.94 per share in the year-ago period. Synchrony Financial projects quarterly revenue of $3.8 billion, compared to $3.81 billion a year earlier, according to data from Benzinga Pro.On Sept. 29, Synchrony named Deborah Ellinger to its board of directors.Synchrony Finan ...

Core Insights - Synchrony Financial (SYF) is expected to report third-quarter 2025 results on October 15, with earnings estimated at $2.16 per share and revenues of $4.7 billion [1][5]. Earnings Estimates - The earnings estimate for the third quarter has remained stable, indicating an 11.3% year-over-year increase, while revenues are projected to grow by 2% year-over-year [2]. - For the full year 2025, the revenue estimate is $18.54 billion, reflecting a 3% year-over-year rise, and the EPS estimate is $8.35, signaling a 26.7% increase year-over-year [3]. Earnings Performance - Synchrony has consistently beaten consensus estimates in the last four quarters, with an average surprise of 17.9% [3]. Earnings Prediction Model - The model predicts a likely earnings beat for Synchrony, supported by a positive Earnings ESP of +5.07% and a Zacks Rank of 3 (Hold) [4]. Factors Influencing Q3 Results - The company is expected to benefit from increased net interest margin and lower provision for credit losses, with net charge-offs likely decreasing significantly [5][7]. - However, increased costs and softer purchase volumes may partially offset these gains [5][7]. Financial Metrics - The consensus estimate for net interest margin is 15.35%, up from 15.04% a year ago, indicating improved profitability [6]. - The net charge-offs ratio is estimated at 5.39, down from 6.06 a year ago, which is expected to positively impact results [7]. Active Accounts and Purchase Volumes - Total average active accounts are projected to decline by 2.3% in Q3, with a marginal decrease in Average Interest-Earning Assets [8]. - Purchase volumes are also expected to decline slightly, with a consensus estimate indicating a 1.1% fall due to selective consumer spending [9].

Core Insights - The current investment landscape highlights persistent skepticism towards the Energy and Financial sectors, which are identified as undervalued [1] Financial Sector Summary - Bank of New York Mellon (BK) has an Acquirer's Multiple (AM) of 2.1 and a free cash flow (FCF) yield of 3.2%, while Synchrony Financial (SYF) shows an AM of 2.2 and an exceptional FCF yield of 37.2%, indicating a strong deep-value case in financials despite market concerns over credit and interest-rate risks [2] - The market's pricing reflects ongoing credit and interest-rate risks, which disciplined value investors may view as opportunities [2] Energy Sector Summary - Petrobras (PBR) trades at an AM of 4.1 with a 36.4% FCF yield, and Equinor (EQNR) has an AM of 2.7 with an 11.4% FCF yield and a near-double-digit dividend payout, showcasing a disconnect between strong cash generation and market doubts about fossil fuel demand [3] - Both Petrobras and Equinor maintain strong balance sheets and shareholder distributions, yet their valuations remain low [3] Healthcare Sector Summary - Molina Healthcare (MOH) appears with an AM of 6.0 and a 3.9% FCF yield, indicating consistent profitability and steady operating income growth, which is appealing in uncertain markets [4] Market Implications - The convergence of multiple sectors at the top of value screens signals broad-based pessimism regarding future earnings durability, particularly in Energy and Finance due to transition risks and credit concerns [5] - The presence of a healthcare company suggests selective investment opportunities beyond typical cyclical sectors [5] Conclusion - The value landscape is dominated by Energy and Financials, which offer high free cash flow and strong capital returns amidst market skepticism, presenting opportunities for patient contrarian investors [6] - Select healthcare names provide diversification, indicating fertile ground for disciplined value seekers in a cautious market environment [6]

Over the last few months, Synchrony Financial (NYSE: SYF ) has delivered quite good returns to its investors, with its stock price growing over 35% in the last 6 months, primarily driven by the vacation of the capI am a value focused investor, conducting fundamental research on sectors like but not limited to chemicals, homebuilders, building materials, industrials and metals & mining. I prefer to invest in stocks which are cheaply available and have a catalyst in the near future. My investment horizon rang ...

Core Viewpoint - Synchrony Financial has shown strong performance with a stock price increase of over 35% in the last 6 months, primarily due to the vacation of the cap [1] Group 1: Company Performance - Synchrony Financial's stock price has grown over 35% in the last 6 months [1] Group 2: Investment Strategy - The focus is on value investing, targeting stocks that are undervalued and have near-term catalysts [1] - The investment horizon ranges from a quarter to two years [1]

Core Insights - Synchrony Financial has acquired Versatile Credit, a consumer-financing software provider, to enhance its technology roadmap for consumer financing solutions [5] Company Summary - The terms of the acquisition were not disclosed, and it is expected to be immaterial for Synchrony Financial [5]

Core Insights - PSG has completed the sale of Versatile Credit, a consumer-financing software provider, to Synchrony [1] - The transaction involves connecting merchants, lenders, and consumers through point-of-sale solutions [1] - Versatile Credit serves retailers and healthcare providers [1] Company Overview - PSG is a leading growth equity firm specializing in software and technology-enabled services [1] - Versatile Credit focuses on consumer financing solutions [1] Transaction Details - The terms of the transaction were not disclosed [1] - The acquisition enhances Synchrony's capabilities in consumer financing [1]

Core Insights - Synchrony has acquired Versatile Credit, a consumer-financing software provider, enhancing its technological capabilities in the consumer financing sector [1][4] - The acquisition aims to improve access to credit for consumers and drive sales for merchants by leveraging Versatile's multi-source financing platform [2][3] Company Overview - Synchrony is a leading consumer financing company that has been serving the needs of individuals and businesses for nearly 100 years, providing responsible access to credit and banking products [7] - Versatile Credit has been a partner of Synchrony for over 15 years, focusing on providing multiple credit access opportunities to shoppers [3] Strategic Goals - The acquisition will allow Versatile to maintain its business strategy and management structure while collaborating with Synchrony to accelerate the technology roadmap for consumer financing solutions [4] - Versatile's platform connects merchants and healthcare providers with a variety of lending products, enhancing the user experience and driving sales growth [3] Market Impact - The acquisition is expected to be immaterial to Synchrony's earnings per share, indicating a strategic move rather than a significant financial burden [4] - Synchrony aims to expand its reach to more merchants and consumers through Versatile's established platform, which serves various industries including furniture, automotive, and elective medical sectors [3]

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