2023-07-20 13:47:39 ET
Synovus Financial ( NYSE: SNV ) fell ~5% on Thursday noon after the bank holding company reduced its 2023 guidance.
The company updated its 2023 adjusted revenue guidance growth to 0%-3% from 4%-7%.
The 2023 consensus revenue estimate stands at $2.31B (+4.74% Y/Y).
The updated guidance assumes the Federal Reserve increasing the target rate to 5.5% in July and holding through year-end.
Synovus Financial also updated its 2023 guidance for other metrics. Here is a look:
"Strong deposit production, increased capital levels and stability in credit metrics, as we saw during the second quarter, all serve as mitigants to the risks of an environment with heightened levels of volatility and uncertainty," CEO Kevin Blair said .
"And as we position the company for sustainable, long-term growth, we're proactively optimizing the balance sheet, we've adjusted revenue expectations in response to slower economic growth trends and deposit remixing, and we've significantly reduced expense growth," Blair said.
The company's Q2 non-GAAP EPS of $1.16 beats by $0.01, and revenue of $567.81M (+8.6% Y/Y) beats by $1.61M.
Non-GAAP EPS was down on a yearly basis, compared to $1.17 in Q2'22.
The stock was gaining pre-market today, but lost value after market open. Here is a look at the stock movement today:
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Synovus Financial falls as bank holding company reduces 2023 guidance