Earnings Preview: Synovus Financial

Synovus Financial Corp. (SNV) is expected to report Q2 earnings after market close Thursday, July 24, with a conference call scheduled for 4:30 PM ET.

Guidance

Analysts are looking for EPS of 13c on revenue of $384.27M. The consensus range for EPS is (1c) to 21c, while the consensus range for revenue is $381.31M to $389.60M, according to First Call.

Analyst Views

Research firms have had varying outlooks on Synovus in recent weeks. SunTrust recently called Synovus their best long idea, and they reiterated their Buy rating. Conversely, Morgan Keegan early this month downgraded Synovus to Market Perform from Outperform, citing their concerns about a likely dividend cut, and losses they believe the company will suffer in its construction and development portfolio. And on a positive note, Bank of America wrote last month that they would feel comfortable owning Synovus.

Comments

[weiwentg]

earnings came in at 4c per share, and the stock is down 6% after hours right now. I'm going to agree with the Morgan Keegan folks on this one: they do run the risk of having to cut their dividend due to increased defaults on their residential construction portfolio.

Synovus has quite a bit of spare capital from the TSS spinoff, though, and is likely to survive the crunch. I think its regional competitors probably have more problems.