Synchrony Financial SYF surprised investors with its second-quarter results, reporting a net interest income of $4.405 billion, higher than the expected $4.287 billion. The company also exceeded earnings per share expectations, posting $1.55 compared to the consensus of $1.3. Additionally, loan receivables increased by 8% to $102.3 billion, showing positive growth in the company’s financial portfolio. Despite a 1% decline in purchase volume to $46.8 billion, interest and fees on loans rose by 10% from the previous year to $5.3 billion.
Looking ahead, Synchrony Financial anticipates earnings per share between $7.60 and $7.80 for FY24, surpassing the $7.25 consensus. This forecast considers various factors, including the late fee rule implementation date, the impact of PPPC mainly in the third and fourth quarters of 2024, and a $1.96 Pets Best gain on sale in the first quarter of 2024. Following these robust quarterly results, Synchrony shares experienced a slight dip, with a 0.7% decrease in trading value to $51.84 on Thursday. Analysts reacted to this news by revising their price targets for Synchrony Financial.
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