Synovus Earnings Preview

Motley Fool Staff
Updated

Investors are on the edge of their collective seats, hoping that Synovus (NYS: SNV) will top analyst expectations for the fourth consecutive quarter. The company will unveil its latest earnings on Tuesday, April 24. Synovus Financial is a financial services and a bank holding company. The company provides financial services, including commercial and retail banking, financial management, insurance, mortgage and leasing services to its customers through its subsidiaries.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Synovus with 13 of 17 analysts rating it hold. Analysts don't like Synovus as much as competitor First Horizon National overall. Nine out of 20 analysts rate First Horizon National a buy compared to two of 17 for Synovus. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.

  • Revenue Forecasts: On average, analysts predict $287.1 million in revenue this quarter. That would represent a decline of 4.8% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.01 per share. Estimates range from breaking even to a profit of $0.02.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 84.3% giving it an "outperform" rating. The greater community agrees with the All-Stars, as 87.5% give it a rating of "outperform." Though still bullish, the CAPS rating of four out of five stars for Synovus is a bit more pessimistic than the community assessment.


Management:
Now, a look at how efficient management has been at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The company's net margins have been increasing year-over-year for the last four quarters. Net margins reflect what percentage of revenue becomes profit. Here are Synovus' reported margins for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Net Margin

7.9%

7.3%

(11.0%)

(21.8%)

For all our Synovus-specific analysis, including earnings and beyond, add Synovus to My Watchlist.

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