Synchrony Financial
SYF: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$46.00 | Qdsv | Pbgvmvzgt |
Synchrony Financial Earnings: Strong Loan Growth but Credit Costs Are a Drag on Results
No-moat-rated Synchrony Financial reported decent first-quarter earnings that benefited from a one-time gain from the sale of its Pets Best business. Excluding the impact of the Pets Best transaction, revenue increased 16.6% from last year to $3.7 billion. Adjusted earnings per share decreased from $1.81 last year to $1.18. These results translate to an adjusted tangible return on equity of 16.8%, which is modestly below the bank’s historical average. As we incorporate these results, we do not plan to materially alter our $46 fair value estimate for Synchrony.