SLM Earnings: Swinging to a Profit

  Google+ | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

S&P 500 (NYSE:SPY) component SLM Corporation (NYSE:SLM) reported its results for the second quarter. SLM originates, services and collects student loans. It provides funding, delivery and servicing support for education loans in the United States.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

SLM Corporation Earnings Cheat Sheet

Results: Reported a profit of $292 million (59 cents per diluted share) in the quarter. SLM Corporation had a net loss of $5.6 million or a loss 2 cents per share in the year-earlier quarter.

Revenue: Fell 3.9% to $1.4 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SLM Corporation beat the mean analyst estimate of 54 cents per share. It beat the average revenue estimate of $717.7 million.

Quoting Management: “We continue to grow our private credit business and find productivity gains in challenging economic conditions,” said Albert L. Lord, vice chairman and CEO. “We head into this academic year with loan products that promote and reward in-school payments. The performance of these loans over recent years foreshadows better credit ratings for our customers and lower defaults for Sallie Mae.”

Key Stats:

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 3 cents in the first quarter and by one cent in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 52 cents per share from 51 cents. Over the past three months, the average estimate for the fiscal year has climbed from $2.12 per to share to $2.17.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Hot Additional Stories:

Will New Apple Products PUMP Shares Higher?

Time to BUY This Dow Stock Near a 20 Year Low?

Is This Tech Behemoth a Long Term Stock Buy?

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business