Has Synovus Financial Corp (SNV) Improved Earnings Growth In Recent Times?
When Synovus Financial Corp’s (NYSE:SNV) announced its latest earnings (30 September 2017), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Synovus Financial’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not SNV actually performed well. Below is a quick commentary on how I see SNV has performed. See our latest analysis for SNV
How SNV fared against its long-term earnings performance and its industry
I like to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to examine different stocks on a similar basis, using new information. Synovus Financial’s most recent twelve-month earnings is $304M, which, in comparison to last year’s figure, has increased by 34.36%. Since these values may be fairly myopic, I’ve determined an annualized five-year value for Synovus Financial’s net income, which stands at $144M. This shows that, generally, Synovus Financial has been able to gradually grow its bottom line over the last couple of years as well.
What’s enabled this growth? Let’s take a look at if it is solely because of an industry uplift, or if Synovus Financial has experienced some company-specific growth. Over the past few years, Synovus Financial grew its bottom line faster than revenue by efficiently controlling its costs. This resulted in a margin expansion and profitability over time. Looking at growth from a sector-level, the US banks industry has been growing its average earnings by double-digit 12.54% over the prior year, and a less exciting 9.71% over the previous five years. This shows that whatever uplift the industry is deriving benefit from, Synovus Financial is able to leverage this to its advantage.
What does this mean?
Synovus Financial’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Synovus Financial gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Synovus Financial to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SNV’s future growth? Take a look at our free research report of analyst consensus for SNV’s outlook.
2. Financial Health: Is SNV’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
