SLM Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component SLM (NASDAQ:SLM) will unveil its latest earnings on Wednesday, October 17, 2012. SLM originates, services and collects student loans. It provides funding, delivery and servicing support for education loans in the United States.

SLM Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 54 cents per share, a rise of 50% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 52 cents. Between one and three months ago, the average estimate moved up. It has dropped from 55 cents during the last month. For the year, analysts are projecting net income of $2.15 per share, a rise of 17.5% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported profit of 49 cents per share versus a mean estimate of net income of 54 cents per share. In the first quarter, the company beat estimates by 3 cents.

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A Look Back: In the second quarter, the company swung to a profit of $292 million (59 cents a share) from a loss of $5.6 million (2 cents) a year earlier, but missed analyst estimates. Revenue rose 45.2% to $1.52 billion from $1.05 billion.

Wall St. Revenue Expectations: On average, analysts predict $713 million in revenue this quarter, a decline of 5.9% from the year-ago quarter. Analysts are forecasting total revenue of $2.81 billion for the year, a decline of 8.2% from last year’s revenue of $3.06 billion.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 9.2% in the first quarter after increasing in the second quarter.

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

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