SLM Earnings: Swings to a Profit but Still Misses Estimates

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

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SLM Corporation Earnings Cheat Sheet

Results: Reported a profit of $188 million (39 cents per diluted share) in the quarter. SLM Corporation had a net loss of $47 million or a loss 10 cents per share in the year-earlier quarter.

Revenue: Fell 74.6% to $277 million from the year-earlier quarter.

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

Quoting Management: “The quarter further confirms the rebound of our private credit business,” said Albert L. Lord, vice chairman and CEO. “While our balance sheet and earnings quality grow, so do our future prospects.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by one cent.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 45.2% to $1.52 billion in the second quarter from the year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 51 cents a share to 52 cents over the last sixty days. Over the past three months, the average estimate for the fiscal year has climbed from $2.14 per to share to $2.17.

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

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