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Preview: Synchrony Finl's Earnings

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Synchrony Finl (NYSE:SYF) announces its next round of earnings this Friday, January 29. Here is Benzinga's everything-that-matters guide for this Friday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect Synchrony Finl's EPS to be near $0.91 on sales of $3.55 billion. Synchrony Finl reported a profit of $1.1 per share when it published results during the same quarter last year. Sales in that period totaled $4.03 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Friday, earnings would be down 17.27%. Revenue would be down 11.89% from the same quarter last year. Here is how the Synchrony Finl's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.70 0.12 -0.31 1.07
EPS Actual 0.63 0.06 0.45 1.10
Revenue Estimate 3.49 B 3.64 B 3.92 B 4.07 B
Revenue Actual 3.46 B 3.40 B 3.89 B 4.03 B

Stock Performance

Over the last 52-week period, shares of Synchrony Finl are up 7.0%.

Do not be surprised to see the stock move on comments made during its conference call. Synchrony Finl is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings