Wednesday is shaping up to be good day for consumer financial giant Synchrony Financial.
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Shares for the company are jumping in premarket trading after it not only reported better-than-expected earnings but it also extending its partnership with Sam’s Club.
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And, to sweeten the pot even more Walmart announced it has dropped its lawsuit against them after the retailer giant slapped its former credit card issuer with a hefty lawsuit alleging that they broke an “implied promise.”
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| SYF | SYNCHRONY FINANCIAL | 29.46 | +2.91 | +10.96% |
The two companies parted ways in last July after Walmart chose Capital One to handle its private-label and co-branded credit cards. Since, the two have been negotiating whether to sell or retain the $10 billion in balances on Walmart’s portfolio.
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Synchrony finally agreed to sell Walmart’s loan to Capital One. Shares for Capital One, however, are dipping in pre-market trading.
Earlier Wednesday, Synchrony came out with fourth quarter earnings of $1.09 per share, beating the Zacks Consensus Estimate of $0.93 per share. The report represents an earnings suprise of 17.20 percent. What more, over the last four quarters, the company has surpassed consensus EPS estimates four times.
