NYSE$SYF

Synchrony Financial · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Synchrony's first quarter performance was driven by its differentiated business model and the strength of its customers, delivering strong growth across diversified partners and products.

Synchrony Financial reported net earnings of $601 million, or $1.35 per diluted share, for the first quarter of 2023. The company achieved record first quarter purchase volume and strong receivables growth, while returning $500 million of capital to shareholders.

  • Purchase volume increased 3% to $41.6 billion, or 11% on a Core basis.
  • Loan receivables were $91.1 billion and increased 15%, or 16% on a Core basis.
  • Net interest margin decreased 58 basis points to 15.22%.
  • Returned $500 million of capital to shareholders, including $400 million of share repurchases.

Headline financials

Total Revenue

$4.12B

Previous: $3.9B+5.6%
EPS (adj)

$1.35

Previous: $1.77-23.7%
Net Interest Margin

15.2%

Previous: 15.8%-3.7%
Purchase Volume

$41.6B

Previous: $40.5B+2.7%
Avg. Active Accounts

69.5M

Previous: 70.1M-0.9%
Free Cash Flow

$601M

Previous: $932M-35.5%
Net Income

$601M

Previous: $932M-35.5%
Operating Income

$1.93B

Previous: $2.94B-34.3%
Gross Profit

$2.83B

Previous: $3.38B-16.3%
Cash & Equivalents

$15.3B

Previous: $10.5B+45.2%
Total Assets

$108B

Previous: $95.3B+13.2%

Revenue & EPS history

Synchrony · Revenue · Quarterly

$4.12B

Q1 2023+5.6%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Synchrony · $4.4B total across 5 segments · Q3 2023

  • Home & Auto
    $1.69B
  • Digital
    $1.31B
  • Diversified & Value
    $788M
  • Health & Wellness
    $356M
  • Lifestyle
    $259M

Forward guidance

While the macroeconomic environment remains uncertain, Synchrony remains confident in their business performance and financial outlook for the remainder of this year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.4%

Avg return

30 days after

57%

31 / 54 earnings

Positive

+12.3%

Q4 2018

Best reaction

-15.5%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-2.9%-10.0%
Q4 2025-6.8%-6.3%-4.6%
Q3 2025-0.8%-0.8%+0.3%
Q2 2025+0.3%-1.4%+3.8%
Q1 2025+2.8%+8.9%+21.7%
Q4 2024-4.6%-1.3%-15.2%
Q3 2024+6.4%+4.7%+21.9%
Q2 2024-1.7%-2.3%-9.8%
Q1 2024+4.2%+4.3%+1.1%
Q4 2023+0.5%+4.7%+5.1%
Q3 2023-3.2%-1.9%+3.7%
Q2 2023+1.7%-2.4%-6.9%
Q1 2023-1.3%-2.2%-0.8%
Q4 2022-0.1%+4.7%+0.1%
Q3 2022+6.0%+9.3%+11.4%
Q2 2022+4.8%+4.1%+12.1%
Q1 2022+8.0%+0.7%-12.3%
Q4 2021-4.1%-3.9%-2.8%
Q3 2021+1.8%-3.6%-5.2%
Q2 2021+5.2%+3.8%+9.4%
Q1 2021+3.8%+5.5%+15.0%
Q4 2020-3.3%+0.6%+7.8%
Q3 2020-7.6%-4.6%+3.3%
Q2 2020+2.4%+5.3%+7.0%
Q1 2020+3.0%+8.9%+16.3%
Q4 2019-11.0%-9.8%-7.9%
Q3 2019+3.2%+3.3%+9.0%
Q2 2019-2.1%+1.4%-7.4%
Q1 2019+0.9%+0.7%+5.0%
Q4 2018+12.3%+12.9%+20.1%
Q3 2018-0.6%-3.6%-12.6%
Q2 2018-1.6%-2.7%+4.5%
Q1 2018-1.8%-5.8%+0.3%
Q4 2017+6.0%+6.5%-1.5%
Q3 2017+3.1%+2.1%+6.8%
Q2 2017+4.1%+3.5%+1.8%
Q1 2017-15.5%-13.0%-17.2%
Q4 2016+0.4%+0.8%+3.0%
Q3 2016+6.1%+5.8%+23.9%
Q2 2016-0.6%-0.4%-3.1%
Q1 2016+0.1%
Q4 2015+2.7%
Q3 2015+0.1%
Q2 2015+5.4%
Q1 2014+1.8%
Q1 2015+0.4%
Q1 2013-0.7%
Q4 2012-0.7%
Q2 2014-0.7%
Q4 2014+7.8%
Q3 2013+2.1%
Q3 2014+0.4%
Q4 2013-3.3%
Q2 2013-3.3%

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