Synovus Financial Surprises Investors with Strong Earnings Report
Synovus Financial (SNV) reported quarterly earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of $1.09 per share. This marks a substantial increase from last year’s $0.84 per share. These earnings figures have been adjusted for one-time items.
This quarterly performance represents an earnings surprise of 12.84%. Previously, analysts expected the holding company for Synovus Bank to report earnings of $0.96 per share; however, it achieved $1.16, leading to a 20.83% surprise.
In the last four quarters, Synovus has exceeded earnings expectations twice. The company operates within the Zacks Banks – Southeast industry and reported revenues of $564.72 million for the quarter ending September 2024, which is 1.34% higher than the Zacks Consensus Estimate. This represents an increase from last year’s revenues of $550.3 million. Over the past year, Synovus has surpassed revenue forecasts just once.
The future stock price performance will greatly rely on management’s insights during the earnings call, reflecting how recent results and future expectations could guide investors’ decisions.
Since the start of the year, Synovus shares have climbed approximately 25.7%, outpacing the S&P 500’s gain of 21.9%.
What Lies Ahead for Synovus?
Investors are eager to know what the future holds for Synovus. While no definitive answers are available, analyzing the company’s earnings outlook can provide some guidance. This includes current earnings expectations for upcoming quarters and any recent adjustments to those estimates.
Research shows a strong link between short-term stock performance and changes in earnings estimate revisions. Investors can monitor these changes independently or rely on the Zacks Rank, which has a solid history of leveraging earnings revisions for predictions.
Before this earnings release, the trend for Synovus estimates appeared mixed. Depending on the recent results, the current Zacks Rank for the stock is #3 (Hold), suggesting it is likely to perform similarly to the market ahead.
Looking to the future, the consensus EPS estimate stands at $1.08, with projected revenues of $559.82 million for the next quarter. For the current fiscal year, estimates are $4.17 on $2.08 billion in revenues.
It’s crucial to remember that the stock’s performance is also influenced by the broader industry outlook. Currently, the Zacks Industry Rank for Banks – Southeast sits in the bottom 34% of over 250 Zacks industries. Historically, industries in the top half of this ranking perform more than twice as well as those in the bottom half.
Another bank from the same sector, Customers Bancorp (CUBI), has yet to announce its results for the quarter ending September 2024. Analysts anticipate its earnings will be $1.45 per share, a decrease of 44% year-over-year. The EPS estimate has dropped 8.6% over the past 30 days. Customers Bancorp’s expected revenue for the quarter is $192.64 million, down 11.5% from the previous year.
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Synovus Financial Corp. (SNV): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
