Synchrony Financial is expected to beat second-quarter earnings estimates when it reports on July 21, driven by higher purchase volumes and an improved net interest margin. The Zacks Consensus Estimate for the quarter stands at $2.02 per share on revenues of $4.67 billion, with the earnings figure reflecting a 19.2% year-over-year decline while revenues are seen rising 3.4%. The company has an Earnings ESP of +2.07% and a Zacks Rank of 3, a combination that historically signals a likely beat. Analysts project interest and fees on loans of $5.47 billion, up 2.6% from a year ago, and a net interest margin of 15.31% versus 14.78% a year earlier, while total purchase volumes are expected to grow 5.1% and average active accounts to increase 1.2%. Partially offsetting these positives are higher information processing and employee costs, a nearly 10% rise in RSA, and a 0.2% dip in average interest-earning assets.
Synchrony Financialexpected Q2 earnings beat driven by higher purchase volumes and improved net interest margin
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