Earnings Estimates Report: Synovus Financial Corporation (NYSE:SNV)

Synovus Financial Corporation (NYSE:SNV) reported earnings for the three months ended Mar2016 on April 19, 2016. The company earned $0.39 per share on revenue of $281.34M. Analysts had been modeling earning per share of $0.44 with $282.86M in revenue.

Synovus Financial Corporation (SNV) on April 19, 2016 reported financial results for the quarter ended March 31, 2016.

First Quarter Highlights

• Net income available to common shareholders for the first quarter 2016 was $50.0 million or $0.39 per diluted share as compared to $55.8 million, or $0.43 per diluted share for the previous quarter and $51.4 million, or $0.38 per diluted share for the first quarter 2015.


• Adjusted diluted earnings per share of $0.43 excluding loss on early extinguishment of debt, litigation contingency/settlement expense, and restructuring charges, up 14.6% from $0.38 per adjusted diluted share for the first quarter 2015.


• Total loans grew $328.6 million or 5.9% annualized from the previous quarter and $1.65 billion or 7.8% as compared to the first quarter 2015.


• Average core deposits grew $55.9 million or 1.0% annualized from the previous quarter and $2.09 billion or 10.5% as compared to the first quarter 2015.


• Total revenues1 of $281.3 million, up $2.5 million or 0.9% from the previous quarter and 4.8% from the first quarter 2015.


• Net interest margin of 3.27%, up 9 basis points from the previous quarter and down 1 basis point from the first quarter 2015.


• Credit quality metrics remained favorable with a net charge-off ratio of 13 basis points, up 7 basis points from the previous quarter and down 10 basis points from the first quarter 2015.


• The company continued to return capital to shareholders during the quarter, acquiring an additional $110.9 million of common stock.


• From inception of the existing $300 million repurchase program announced in October 2015 through April 18, 2016, the company has repurchased $158.5 million of common stock, reducing the total share count by 5.4 million.


• During the quarter, Synovus paid a common stock dividend of $0.12 per share, representing a 20% increase from the fourth quarter 2015 dividend.

“During the first quarter, we demonstrated continued overall progress through increased revenue, driven by balance sheet growth and net interest margin expansion, as well as through improved efficiency. We also continued our return of capital to shareholders, reaching the halfway mark of our current $300 million common share repurchase program,” said Kessel D. Stelling, Synovus Chairman and CEO. “We are making ongoing investments in talent to broaden relationships and increase share in all business lines, especially in key high-growth markets. Our exceptional team remains deeply committed to serving our customers and communities while crisply executing on the right strategic priorities for improved long-term financial performance.”

Synovus Financial Corporation earnings per share showed an increasing trend of 21.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 211%.Analysts project EPS growth over the next 5 years at 8%. It has EPS annual growth over the past 5 fiscal years of 16.8% when sales declined -6.5. It reported 7.7% sales growth, and 3.2% EPS growth in the last quarter.

The stock is trading at $32.17, up 26.78% from 52-week low of $25.48. The stock trades down -4.06% from its peak of $33.8 and 2.49% above the consensus price target of $32.97. Its volume clocked up at 0.66 million shares which is lower than the average volume of 1.04 million shares. Its market capitalization currently stands at $4.04B.