Synchrony Financial Q2 Revenue Rises 1.9% But Misses Estimates

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Summary · why it matters

Synchrony Financial reported second-quarter revenues of $3.72 billion, up 1.9% year on year, falling short of analysts' expectations by 0.7% even as it beat EPS and efficiency ratio estimates. The consumer credit card lender, which powers over 73 million active accounts through partnerships with Amazon, PayPal, and Lowe's, delivered the slowest revenue growth among the 6 credit card stocks tracked, and its shares are down 2% since reporting, trading at $71.93. Bread Financial posted the group's biggest analyst estimate beat, with revenues of $993 million, up 6.9% year on year and 3.5% above expectations, though its stock is down 4.2% at $97.63. American Express turned in the weakest performance against estimates, with revenues of $18.55 billion, up 12.8% year on year but 5.8% short of consensus, sending shares down 10.7% to $304.51. Mastercard reported revenues of $9.28 billion, up 14.1% and 2.2% above expectations, with its stock up 1.2% at $570.12, while Capital One delivered the group's fastest revenue growth at $15.83 billion, up 25.8% and in line with estimates, though its shares are down 5% at $195.91. As a group, the 6 credit card stocks reported revenues in line with consensus, but share prices have collectively declined 3.2% since the latest earnings results.

Impact on assets 8

Digital Finance & Tokenization± Mixed
American Express Company
AXP
▼ NegativeCapitalrelevance

American Express posted the weakest estimate miss with revenue 5.8% below consensus, sending shares down 10.7%.

Bread Financial Holdings, Inc.
BFH
▲ PositiveCapitalrelevance

Bread Financial posted the group's biggest analyst estimate beat, with revenue up 6.9% and 3.5% above expectations.

Mastercard Inc
MA
▲ PositiveCapitalrelevance

Mastercard reported revenue up 14.1% and 2.2% above expectations, with its stock up 1.2%.

Financials± Mixed
Synchrony Financial
SYF
▼ NegativeCapitalrelevance

Synchrony's Q2 revenue rose 1.9% but missed estimates by 0.7%, the slowest growth among the tracked card stocks.

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Consumer Discretionary▲