Synovus Financial Q3 Earnings: Is NYSE:SNV Cheap at 0.8x Price/Book?


Synovus Financial Corp. (NYSE:SNV) is scheduled to report Q3 earnings results on October 20, 2020.

The company is expected to report earnings of $0.52/share on revenue of $474.7 million. The consensus earnings per share (EPS) of $0.52/share is based on a poll of 15 analysts and represents a decline in eps of −46.3% over the same quarter last year, when the company reported earnings of $0.97/share.

The revenue forecast of $474.7 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −3.3%. Last year the company reported $490.9 million in revenue for the quarter.

Expected to report EPS contraction of −46.3% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $474.69 $490.86 −3.3%
EPS $0.52 $0.97 −46.3%

Earnings Call Trends

Historically, management has exceeded analyst expectations 2 out of the last 8 tracked quarters, missed 5 quarters, and met expectations 1 quarters.

What are your expectations from Synovus Financial Corp. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.20 $0.23 13.4% Beat
Q1, 2020 $0.60 $0.21 −64.9% Missed
Q4, 2019 $0.97 $0.94 −3.0% Missed
Q3, 2019 $1 $0.97 −2.8% Missed
Q2, 2019 $0.99 $1 0.9% Beat
Q1, 2019 $0.91 $0.98 8.1% Beat
Q4, 2018 $0.93 $0.87 −6.8% Missed
Q3, 2018 $0.92 $0.84 −9.0% Missed

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 June 30, 2020, the stock price reacted by increasing 12.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 21, 2020 $18.17 $20.40 12.3% Increase
April 24, 2020 $16.82 $18.12 7.7% Increase
January 24, 2020 $39.44 $36.64 −7.1% Decline
October 22, 2019 $36.25 $34.51 −4.8% Decline

Fundamentals And Technical Analysis

Synovus Financial Corp. is currently trading at $24.22/share, up 1.3% for the day. The company is trading at approximately 60.2% of its 52-week high of $40.32/share. The company’s stock price is up 18.7% since the last earnings report and down −2.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 54.67 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 9.24 and a forward P/E multiple of 15.32.

Synovus Financial Corp.’s current share price also implies a price-to-book (P/B) multiple of 0.79. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $24.22
P/E Ratio 9.2x
P/E Ratio (Fwd) 15.3x
PEG Ratio −0.4
Total Debt / Total Capital 43.0%
Levered Free Cash Flow -$567.4 million
EV / EBITDA 2.1x


Synovus Financial Corp. is a mid-cap stock with a market capitalization of $3.521 billion. The company operates in the Financials 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 operates through three segments: Community Banking, Wholesale Banking, and Financial Management Services. The company’s commercial banking services include treasury management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans. Its retail banking services comprise 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 and debit card 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, 2019, it operated through 298 branches and 389 ATMs in Alabama, Florida, Georgia, South Carolina, and Tennessee. Synovus Financial Corp. was founded in 1888 and is headquartered in Columbus, Georgia.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at or at +1 (516) 778-6257.

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