Yahoo Finance Here's What Analysts Are Forecasting For Synovus Financial Corp. After Its Full-Year Results
It's been a mediocre week for Synovus Financial Corp. (NYSE:SNV) shareholders, with the stock dropping 11% to US$35.76 in the week since its latest yearly results. Results look mixed - while revenue fell marginally short of analyst estimates at US$1.9b, statutory earnings were in line with expectations, at US$3.47 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
See our latest analysis for Synovus Financial
Taking into account the latest results, the latest consensus from Synovus Financial's 13 analysts is for revenues of US$1.90b in 2020, which would reflect a satisfactory 2.2% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$3.48, roughly flat on the last 12 months. Before this earnings report, analysts had been forecasting revenues of US$1.89b and earnings per share (EPS) of US$3.62 in 2020. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at US$41.46, with analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Synovus Financial, with the most bullish analyst valuing it at US$46.00 and the most bearish at US$39.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Synovus Financial's past performance and to peers in the same market. We would highlight that Synovus Financial's revenue growth is expected to slow, with forecast 2.2% increase next year well below the historical 11%p.a. growth over the last five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Synovus Financial.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Synovus Financial. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Synovus Financial's revenues are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Synovus Financial going out to 2021, and you can see them free on our platform here..
It might also be worth considering whether Synovus Financial's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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