NYSE$SYF

Synchrony Financial · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Synchrony's financial performance demonstrated strength with consistent growth and strong risk-adjusted returns, driven by broad-based purchase volume and receivables growth.

Synchrony Financial reported Q3 2023 net earnings of $628 million, or $1.48 per diluted share. Purchase volume increased by 5% to $47.0 billion, and loan receivables increased by 14% to $97.9 billion. The company returned $254 million of capital to shareholders, including $150 million in share repurchases.

  • Purchase volume increased 5% to $47.0 billion.
  • Loan receivables increased 14% to $97.9 billion.
  • Average active accounts increased 6% to 70.3 million.
  • Net interest margin decreased 16 basis points to 15.36%.

Headline financials

Total Revenue

$4.45B

Previous: $3.97B+12.1%
EPS (adj)

$1.48

Previous: $1.47+0.7%
Net Interest Margin

15.4%

Previous: 15.5%-1.0%
Purchase Volume

$47B

Previous: $44.6B+5.4%
Avg. Active Accounts

70.3M

Previous: 66.3M+6.0%
Free Cash Flow

$628M

Previous: $703M-10.7%
Net Income

$628M

Previous: $703M-10.7%
Operating Income

$1.82B

Previous: $2.44B-25.3%
Gross Profit

$2.97B

Previous: $3.04B-2.5%
Cash & Equivalents

$15.6B

Previous: $12B+30.8%
Total Assets

$113B

Previous: $101B+12.1%

Revenue & EPS history

Synchrony · Revenue · Quarterly

$4.45B

Q3 2023+12.1%vs Q3 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

Synchrony is confident in their ability to execute on key strategic priorities and drive market leading returns over the long-term, leveraging core strengths such as advanced data analytics, disciplined underwriting, and a stable funding model.

Tailwinds

  • Prioritizing sustainable growth at appropriate risk-adjusted returns.
  • Selectively investing to meet the increasingly digital demands of customers.
  • Advanced underwriting capabilities.
  • Digital-first servicing strategy.
  • Stable funding model.

Headwinds

  • Changing market conditions.
  • Gradual normalization of credit performance.
  • Impact of credit normalization.
  • Higher net charge-offs.
  • Higher reserve build.

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 2023

Historical avgQ3 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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