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Synchrony Financial (SYF) Reports Q1: Everything You Need To Know Ahead Of Earnings

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Consumer financial services company Synchrony Financial (NYSE: SYF) will be announcing earnings results this Tuesday before market hours. Here’s what you need to know.

Synchrony Financial missed analysts’ revenue expectations last quarter, reporting revenues of $3.79 billion, flat year on year. It was a mixed quarter for the company, with but a slight miss of analysts’ revenue estimates.

Is Synchrony Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Synchrony Financial’s revenue to grow 2% year on year, a reversal from the 22.5% decrease it recorded in the same quarter last year.

Synchrony Financial Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Synchrony Financial has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Synchrony Financial’s peers in the consumer finance segment, only Ally Financial has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 5.5%.

Read our full analysis of Ally Financial’s earnings results here.

There has been positive sentiment among investors in the consumer finance segment, with share prices up 11.5% on average over the last month. Synchrony Financial is up 14.7% during the same time and is heading into earnings with an average analyst price target of $85.30 (compared to the current share price of $76.30).

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