Synchrony Financial (SYF) reported earnings on Fri 24 Jan 20 (b/o)

** charts after earnings **

 

Synchrony Financial beats by $0.03
Reports Q4 (Dec) earnings of $1.10 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $1.07.

Synchrony Financial provides FY20 outlook in slide presentation

• Co sees FY20 loan receivables growth of +5-7%.
• Co sees FY20 net internet margin of 15.25-15.50%.

Earnings this week : Jan 20 - 24, 20 (wk 4)

Monday (Jan 20)

• The market closed on Monday for Martin Luther King Jr. Day.

Tuesday (Jan 21)

• Morning: CMA FNB HAL ONB PETS SBNY TAL
• Afternoon: COF FMBI FULT IBM NAVI NFLX PNFP RNST AMTD TBK UAL UCBI WTFC ZION

Wednesday (Jan 22)

• Morning: ABT ALLY APH ASML BKR BOKF CBSH CBU FITB HTLD JNJ HZO NTRS PLD RCI
• Afternoon: BXS CATY CTXS CNS CVBF FUL HOPE KMI PLXS PTC RJF SLM SLG STLD STL TER TCBI TXN UMPQ

Thursday (Jan 23)

• Morning: AAL AIT AVX BANC BKU CADE COLB CMCSA EWBC FCX GATX HBAN JBLU KEY KMB MTB ORI PPBI PG SFNC LUV STM TRV UNP VFC WBS
• Afternoon: ABCB ASB TEAM AVT DFS ETFC FFBC INTC ISRG MRTN NBHC NXGN SWKS SIVB WAL

Friday (Jan 24) 

• Morning: APD AXP ERIC HRC IBKC MOG.A NEE SYF SNV

=Synchrony Financial (SYF) reported earnings on Wed 23 Jan 2019 (b/o)

Synchrony Financial beats by $0.16 

• Reports Q4 (Dec) earnings of $1.09 per share, $0.16 better than the S&P Capital IQ Consensus of $0.93.
• Provision for loan losses increased $98 million, or 7%, to $1.5 billion, driven by the PayPal Credit program reserve build partially offset by moderating credit trends.

Synchrony Financial announces extension of strategic partnership with Wal-Mart's (WMT) Sam's Club 

The co announced an extension of its strategic partnership with Sam's Club, a segment of Walmart, Inc. (WMT), to continue offering Club members enhanced financing options through the Sam's Club-branded credit cards. As part of the extension, Synchrony will continue to manage and service the credit card programs for Sam's Club members across the retailer's nearly 600 clubs.

• Synchrony also announced it has reached agreement on the sale of the Walmart loan portfolio currently serviced by Synchrony. The portfolio is expected to transfer late in the third quarter or early in the fourth quarter of 2019.
• In addition, Walmart has agreed to dismiss its lawsuit against Synchrony.

Synchrony Financial provides outlook in slide presentation

• Co sees FY19 loan growth of +5-7%.
• CO sees FY19 NIM of 15.75-16.0%.
• Co sees FY19 efficiency ratio of approx 31%.

Earnings this week : Jan 21 - 25, 19 (wk 4)

Earnings confirmed to report this week:

Monday (Jan 21)    

• Market closed for Martin Luther King Jr. Day

Tuesday (Jan 22)

• Morning: ATI FITB GATX HAL HMST JNJ LOGI EDU PETS PLD SWK TRV
• Afternoon: AMTD CNMD COF FMBI HOPE IBKR IBM LRN LTXB NAVI RNST SFNC TBK UCBI WTFC ZION

Wednesday (Jan 23)

• Morning:  ABT APH ASML BKU BPOP CBU CMCSA HZO KMB NTRS PG PGR RES ROL SYF TDY TEL UTX WAT
• Afternoon:  ADTN AZPN BGG BXS CATY CCI CMRE CNS CP CTXS CVBF F FFBC FFIV HXL LRCX  LVS NXGN PTC RJF SLG SLM STL TCBI TER TRMK TXN UMPQ URI VAR XLNX

Thursday (Jan 24)

• Morning:  AAL AEP AIT AVX BANC BMY COLB DLX EWBC FCX GWW HBAN ISCA JBLU LUV MKC MMYT ORI RCI STM TAL TXT UNP VIVO WBS
• Afternoon: ALK ASB AVT CUBI DFS  ETFC FHB FII HTH INTC ISRG NBHC NSC OSIS RMD SBCF SBUX SIVB WAL WDC

Friday (Jan 25)

• Morning: ABBV ABCB APD CL DHI ERIC HRC IBKC LEA MOG.A NEE

-=Capital One (COF) to issue Walmart (WMT) store credit card

• Walmart taps Capital One for store cards, ends Synchrony deal

(Reuters) - Walmart Inc (WMT) has chosen Capital One Financial Corp (COF) as the new issuer of its store credit card, ending a partnership with Synchrony Financial, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Shares of Synchrony Financial (SYF) were down 6.5 percent at $31.25 in afternoon trading, while those of capital One were little changed.

Under the deal, Capital One will issue credit cards that can only be used on Walmart’s website and stores, as well as co-branded cards that can be used almost anywhere else, the Journal reported.

Synchrony, which issues private-label cards as well as co-branded cards, has been Walmart’s exclusive credit-card issuer since 1999.

It was not immediately clear about the future of roughly $10 billion portfolio of Walmart card balances that Synchrony has, WSJ reported.

=Synchrony Financial (SYF) reported earnings on Fri 20 Oct 2017 (b/o)

Synchrony Financial beats by $0.06

• Reports Q3 (Sep) earnings of $0.70 per share, $0.06 better thanthe Capital IQ Consensus of $0.64.
• Net interest income increased $395 million, or 11%, to $3.9 billion, primarily driven by strong loan receivables growth.
• Net interest income after retailer share arrangements increased 13%. Provision for loan losses increased $324 million to $1.3 billion driven by credit normalization and loan receivables growth.
• Efficiency ratio was 30.4%, compared to 30.6% in the third quarter of 2016, driven by strong positive operating leverage. Year-to-date efficiency ratio was 30.3%, compared to 31.0% in the prior year.

=Synchrony Financial (SYF) reported earnings on Fri 21 July 2017 (b/o)

Synchrony Financial beats by $0.04:

• Reports Q2 (Jun) earnings of $0.61 per share, $0.04 better than the Capital IQ Consensus of $0.57.
• Net interest income increased $425 million, or 13%, to $3.6 billion, primarily driven by strong loan receivables growth. Net interest income after retailer share arrangements increased 16%.
• Provision for loan losses increased $305 million to $1,326 million driven by credit normalization and loan receivables growth.

=Synchrony Financial (SYF) reported earnings on Fri 28 Apr 2017 (b/o)

Synchrony Financial misses by $0.12 :

• Reports Q1 (Mar) earnings of $0.61 per share, $0.12 worse than the Capital IQ Consensus of $0.73.
• Net interest income increased $378 million, or 12%, to $3.6 billion, primarily driven by strong loan receivables growth. Net interest income after retailer share arrangements increased 14%.
• Provision for loan losses increased $403 million to $1,306 million due primarily to higher loan loss reserve build and loan receivables growth.

SYF — is it a buy?

• Right after earnings; is SYF a buy?

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• The next few months:

Synchrony Financial (SYF) reported earnings on Fri 21 Oct 2016 (b/o)

** charts after earnings **

  

Synchrony Financial beats by $0.06; beats on revs :

• Reports Q3 (Sep) earnings of $0.73 per share, $0.06 better than the Capital IQ Consensus of $0.67. Co reported Q3 revs +13% YoY to $2.808 bln (net interest income after retailer share arrangements plus other income) vs $2.673 bln Capital IQ consensus
• Net interest income increased $378 million, or 12%, to $3.5 billion, primarily driven by strong loan receivables growth.
• Provision for loan losses increased $284 million to $986 million due to higher loan loss reserve build and loan receivables growth.
• Efficiency ratio was 30.6%, a 362 basis point improvement from the third quarter of 2015.

SYF — is it a buy?

• 8/31/16:  #72

• Next few months:

Synchrony Financial (SYF) warns of higher charge-off rates.

• Synchrony Financial‘s (SYF) warned that its net charge-off rates would be worse than anticipated over the next year.
• It was Synchrony's biggest one-day price and percentage declines since it went public in 2014.
• Synchrony shares have fallen 13% year to date.

• One week later:

Synchrony, a recent General Electric (GE) spinoff that provides private-label credit cards to a variety of businesses, said it expected a 20-30 basis point increase in net charge-off rates — a measure of debt that a company no longer expects to get back and has deemed a loss — and would build up reserves accordingly in Q2.

While Synchrony said it expected some level of weakness and that its loss rate was “at historically low levels,” the announcement came amid growing anxiety about consumer debt.

And as auto loans grow, so have warnings about potentially higher delinquencies. Other analysts have said banks are running out of higher-quality borrowers to target, forcing them to reach for less reliable ones.

SYF — is it a buy?

• Right after earnings. Is SYF is buy?

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• A week later:

• A buying opportunity came about 3 weeks later:

Synchrony Financial (SYF) reported 4Q earnings on Fri 22 Jan 2016 (b/o)

** charts before earnings **

  

** charts after earnings **

  

Synchrony Financial beats by $0.02  :

• Reports Q4 (Dec) earnings of $0.65 per share, $0.02 better than the Capital IQ Consensus of $0.63; platform revenues rose 4.8% year/year to $2.85 bln. 
• Return on assets was 2.6% and return on equity was 17.5%. Net interest margin increased 13 basis points to 15.73% due mainly to an improvement in interest-earning asset yields that resulted from carrying a higher mix of receivables versus lower-yielding liquidity.