Synchrony (SYF) reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.22. This is an increase from last year’s earnings of $1.94 per share. This represents an earnings surprise of 28.83%. In the previous quarter, Synchrony was expected to earn $1.72 per share but reported $2.5, a surprise of 45.35%.

Over the past four quarters, Synchrony has consistently beaten consensus EPS estimates. For the quarter ending September 2025, the company reported revenues of $4.72 billion, surpassing the consensus estimate by 0.64%. This is up from $4.61 billion in the previous year. Synchrony has exceeded consensus revenue estimates twice over the last four quarters.

Synchrony shares have risen about 12.1% since the start of the year, compared to the S&P 500’s gain of 13%. The stock’s future movement will largely depend on management’s guidance during the earnings call. Currently, the consensus EPS estimate for the next quarter is $1.93 with revenues of $4.83 billion, and $8.35 on $18.51 billion for the current fiscal year.

Within the same industry, Inter & Co. Inc. (INTR) is anticipated to report earnings of $0.14 per share, a 40% increase from the previous year. Their revenues are estimated at $381.13 million, up 26.1% year-over-year.

With Synchrony reporting a significant earnings beat today, we see an immediate opportunity as traders. The stock will likely see a positive open, but the implied volatility that was high before the announcement has now likely fallen sharply, perhaps from the 55th percentile down to the 30th. This “volatility crush” makes buying options cheaper than yesterday, but it also makes selling them less profitable.

The strong performance contrasts with the stock’s year-to-date underperformance and its “Hold” rating, creating uncertainty. This tells us the market is waiting for management’s guidance on the earnings call, specifically on future loan growth and credit quality. We need to listen for their outlook on consumer spending heading into the holiday season.

This report comes as recent government data for Q3 2025 showed credit card delinquency rates ticking up to 3.2%, which is still below the pre-pandemic average of 3.8% we saw back in 2019. This suggests Synchrony is managing a healthy consumer environment well, but there are signs of normalization. The Federal Reserve’s decision to hold rates steady in its September 2025 meeting also provides a stable, if watchful, backdrop for lenders.

Given the drop in volatility but lingering questions from the earnings call, a neutral strategy could be effective in the coming weeks. We could consider selling an iron condor, which profits if the stock price stays within a defined range. This approach allows us to collect premium while the market digests the full report and guidance.

For those with a more bullish view, believing this earnings surprise will lead to analyst upgrades, buying call options is now more attractive. With volatility lower, we can purchase calls expiring in November or December at a better price. This play bets that the strong results will force a positive re-rating of the stock over the next several weeks.