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.
| 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!
| 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%.
| 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.
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:
| 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.
