Consumer financial services company, Synchrony Financial SYF, is set to report first-quarter 2025 results on April 22, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.66 per share on revenues of $4.55 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The first-quarter earnings estimate has moved south by 1 cent over the past 60 days. The bottom-line projection indicates a year-over-year increase of 40.7%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 3.4%.

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For 2025, the Zacks Consensus Estimate for Synchrony’s revenues is pegged at $18.62 billion, implying a rise of 3.4% year over year. Also, the consensus mark for current year EPS is pegged at $7.58, implying a jump of around 15% on a year-over-year basis.

SYFbeat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 2.8%.

Q1 Earnings Whispers for SYF

Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s precisely the case here.

Synchronyhas an Earnings ESP of +1.29% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What’s Shaping SYF’s Q1 Results?

Synchrony is expected to have seen advantages in the first quarter from increased net interest margin and average active accounts. The Zacks Consensus Estimate for net interest income indicates around 3% year-over-year growth, while our estimate suggests a 3.8% increase. Our model predicts an increase in interest and fees on loans of 3% from the year-ago level.

Both the Zacks Consensus Estimate and our model estimate suggest that the total average active accounts are likely to have risen marginally in the first quarter.

The financial service provider is expected to have witnessed an increase in Average Interest-Earning Assets. The consensus estimate indicates a 3.4% increase in the metric from the year-ago period. The Zacks Consensus Estimate for net interest margin is pegged at 14.76%, up from 14.55% achieved a year ago, increasing its profitability.

The above-mentioned factors are likely to have benefited the company in the first quarter, positioning it for not only year-over-year growth but also an earnings beat. However, Synchrony is expected to have incurred increased information processing and professional fees in the first quarter and witnessed marginally lower purchase volumes, partially offsetting the positives. 

The Zacks Consensus Estimate for Synchrony’s total purchase volumes for the quarter under review indicates a decline of 0.1% year over year due to selective consumer spending and credit actions. The Zacks Consensus Estimate for the efficiency ratio is pegged at 32.46%, indicating a deterioration from the prior-year reported figure of 25.1%. The net charge-offs are also likely to have substantially risen in the quarter under review.

Other Stocks That Warrant a Look

Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:

Cboe Global Markets, Inc. CBOE has an Earnings ESP of +3.62% and is a Zacks #2 Ranked player.

The Zacks Consensus Estimate for Cboe Global’s bottom line for the to-be-reported quarter is pegged at $2.29 per share, which increased by 2 cents over the past week. The consensus estimate for Cboe Global’s revenues is pegged at $546.5 million, indicating 8.8% growth from a year ago.

Capital Southwest Corporation CSWC has an Earnings ESP of +3.23% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Capital Southwest’s bottom line for the to-be-reported quarter is pegged at 62 cents per share, which remained stable over the past month. The consensus estimate for Capital Southwest’s revenues is pegged at $53.71 million, implying a 15.7% increase from a year ago.

TeraWulf Inc. WULF has an Earnings ESP of +100.00% and a Zacks Rank of 3.

The Zacks Consensus Estimate for TeraWulf’s bottom line for the to-be-reported quarter remained stable over the past week. The consensus estimate for TeraWulf’s revenues is pegged at $46.91 million, suggesting a 10.6% increase from a year ago.

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This article originally published on Zacks Investment Research (zacks.com).

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