Synovus Financial Q4 Earnings: Can SNV Hit Its $0.98 EPS Target?

in EARNINGS/INVESTING IDEAS by

Synovus Financial Corp. (NYSE:SNV) is scheduled to report Q4 earnings results on January 24, 2020, before markets open for trading. The company is expected to report earnings of $0.98/share on revenue of $483.9 million.

The consensus earnings per share (EPS) of $0.98/share is based on a poll of 15 analysts and represents a growth of 12.6% over the same quarter last year when the company reported earnings of $0.87/share.

The revenue forecast of $483.9 million based on a poll of 8 analysts implies a year-over-year (YoY) growth of 32.2%. Last year the company reported $365.9 million in revenue for the quarter.

Expected to report EPS growth of $0.11/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $483.89 $365.92 32.2%
EPS $0.98 $0.87 12.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 1 quarter. What are your expectations from Synovus Financial for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.99 $0.97 -2.0% Missed
Q2, 2019 $1 $1 0.0% Meet
Q1, 2019 $0.91 $0.98 8.2% Beat
Q4, 2018 $0.94 $0.87 -7.4% Missed
Q3, 2018 $0.92 $0.84 -8.7% Missed
Q2, 2018 $0.88 $0.91 3.4% Beat
Q1, 2018 $0.78 $0.84 7.7% Beat
Q4, 2017 $0.67 $0.72 7.5% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by falling by -4.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-22 $36.25 $34.51 -4.8% Decline
2019-07-16 $34.39 $35.11 2.1% Increase
2019-04-23 $35.64 $36.12 1.3% Increase
2019-01-15 $34.94 $35.48 1.5% Increase

Fundamentals And Technical Analysis

Synovus Financial is currently trading at $39.47/share, down -1.3% for the day. The company is trading at approximately 97.7% of its 52-week high of $40.41/share.

The company’s stock price is up 14.4% since the last earnings report and up 1.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 65.28 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:SNV Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 11.3x and a forward P/E multiple of 9.6x. Synovus’s current share price also implies a price-to-book (P/B) multiple of 1.4x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $39.47
P/E Ratio 11.3x
P/E Ratio (Fwd) 9.6x
PEG Ratio -0.8
Total Debt to Capital (%) 44.0%
Levered Free Cash Flow $456.9 million
Enterprise Value / EBITDA

Source: Finbox

Company Profile: Synovus Financial Corp.

Synovus Financial Corp. is a mid-cap stock with a market capitalization of $5.862 billion. The company operates in the Financial sector and the Banks industry.

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides various financial products and services. It offers integrated financial services, including commercial and retail banking, financial management, insurance, and mortgage services.

The company’s commercial banking services comprise treasury management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans.

Its retail banking services consist of accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services; and bank credit card services, including Visa and MasterCard services.

The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, asset management and financial planning services, and individual investment advice on equity and other securities, as well as trust services.

As of December 31, 2018, it operated through 249 branches and 335 ATMs in Georgia, Alabama, South Carolina, Florida, and Tennessee. Synovus Financial Corp. was founded in 1888 and is headquartered in Columbus, Georgia.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.