Synchrony's Walmart feud is over, Sam's Club deal extended
Wednesday is shaping up to be good day for consumer financial giant Synchrony Financial.
Shares are on pace for the best percentage jump ever after it disclosed its fight with Walmart is over. The world's biggest retailer is dropping its lawsuit against the company which alleged that they broke an “implied promise" for their long-running partnership. Additionally, the company will offer Sam's Club, a unit of Walmart, better financing options through the Sam’s branded credit cards, as detailed by the company.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SYF | SYNCHRONY FINANCIAL | 67.04 | +1.05 | +1.59% |
| WMT | WALMART INC. | 89.50 | -0.94 | -1.04% |
| COF | CAPITAL ONE FINANCIAL CORP. | 191.89 | +4.83 | +2.58% |
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. Synchrony finally agreed to sell Walmart’s loan to Capital One.
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Earlier Wednesday, Synchrony came out with fourth quarter earnings of $1.09 per share, beating the Zacks Consensus Estimate of $0.93 per share.