Analysts predict Sallie Mae’s Q4 earnings will show a decline in key metrics
New York: Analysts are gearing up for Sallie Mae’s upcoming earnings report. They expect the company to announce earnings of $0.55 per share, which is a drop of about 23.6% from last year. Revenue is projected to be around $372.3 million, down 3.5% from the same quarter last year.
Interestingly, in the last month, the consensus earnings estimate has been slightly adjusted up by 0.1%. This shows that analysts are rethinking their earlier predictions as the report date approaches.
Before earnings are released, it’s important to look at how estimates have changed. This can give investors a clue about how the stock might perform. Research shows that changes in earnings estimates often correlate with short-term stock price movements.
Investors usually check consensus estimates to see how the company has done. But looking at specific metrics can provide a clearer picture of the company’s performance.
For instance, analysts expect Sallie Mae’s ‘Net Interest Margin’ to be around 5.0%, down from 5.4% last year. They also predict ‘Average Balances-Interest Earning Assets’ will hit $29.92 billion, compared to $28.52 billion a year ago.
As for ‘Net Interest Income,’ the estimate is $371.53 million, which is lower than last year’s $385.89 million. The ‘Other Income’ estimate stands at $23.59 million, up from $20.87 million last year.
Analysts also expect ‘Total Non-Interest Income’ to be about $26.09 million, a significant drop from $57.11 million a year ago.
In the past month, Sallie Mae shares have gained 2.4%, while the S&P 500 has dropped by 2.1%. With a Zacks Rank of #3 (Hold), SLM is likely to perform similarly to the market in the near future.
