NYSE$SYF

Synchrony Financial · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Synchrony's Q3 2022 results were driven by its differentiated business model and understanding of customer needs, delivering strong purchase volume and receivables growth and returning $1.1 billion of capital to shareholders.

Synchrony Financial reported Q3 2022 net earnings of $703 million, or $1.47 per diluted share. The results were driven by a differentiated business model and a deep understanding of customer and partner needs. The company saw a 6% increase in purchase volume and a 13% increase in loan receivables.

  • Purchase volume increased 6% to $44.6 billion, or 16% on a Core basis.
  • Loan receivables of $86.0 billion increased 13%, or 14% on a Core basis.
  • Net interest margin increased 7 basis points to 15.52%.
  • Returned $1.1 Billion of Capital to Shareholders, including $950 Million of Share Repurchases

Headline financials

Total Revenue

$3.97B

Previous: $3.75B+5.9%
EPS (adj)

$1.47

Previous: $2.00-26.5%
Net Interest Margin

15.5%

Previous: 15.4%+0.5%
Purchase Volume

$44.6B

Previous: $41.9B+6.4%
Avg. Active Accounts

66.3M

Previous: 67.2M-1.3%
Free Cash Flow

$703M

Previous: $1.14B-38.4%
Net Income

$703M

Previous: $1.14B-38.4%
Operating Income

$2.44B

Previous: $3.31B-26.3%
Gross Profit

$3.04B

Previous: $3.73B-18.4%
Cash & Equivalents

$12B

Previous: $9.81B+22.0%
Total Assets

$101B

Previous: $91.9B+9.6%

Revenue & EPS history

Synchrony · Revenue · Quarterly

$3.97B

Q3 2022+5.9%vs Q3 2021
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

Synchrony delivered strong financial results for the third quarter 2022, highlighted by healthy trends across the key drivers of their business. Purchase volume growth continued to reflect robust and broad-based demand across the many industries and spend categories that they serve. This momentum, combined with some payment rate moderation, contributed to accelerated loan growth. Credit performance continues to reflect normalization across their portfolio, but still remains well below their targeted underwriting level.

Tailwinds

  • Purchase volume growth continued to reflect robust and broad-based demand across the many industries and spend categories that they serve.
  • Momentum, combined with some payment rate moderation, contributed to accelerated loan growth.
  • Credit performance continues to reflect normalization across our portfolio
  • Credit performance remains well below our targeted underwriting level
  • Synchrony’s differentiated business model is performing as designed and delivering sustainable growth and consistent risk-adjusted returns for our many stakeholders.

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 Q3 2022

Historical avgQ3 2022

+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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