We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
With the second-quarter 2016 earnings season in full swing, investors are keeping a close eye on the performance of the companies. The stressed first quarter that was plagued by several issues including slowdown of the Chinese economy, continued volatility in commodity prices, global growth uncertainties and low rates, largely affected the performance of the finance sector. However, the scenario in the second quarter seems to depict a better environment to some extent with positives including a rebound in oil prices and continued recovery of the U.S. economy.
Underlying loan demand remained stable during the second quarter, with overall growth in loans including commercial and industrial and commercial real estate loans. Also, demand for several consumer categories including card, auto as well as student loans remained strong.
Per our latest Earnings Preview article, overall earnings for the Finance sector in second-quarter 2016 are expected to be down 3.3% year over year. Also, revenues are expected to be down 0.5%. Notably, during the first quarter the sector witnessed a 6.9% decline in earnings while revenues improved 3.3%.
With most of the companies are set to release results, let’s have a look at what’s in store for the following firms, releasing results on Jul 19.
Navient Corporation (NAVI - Free Report) : Quarterly results of Navient, which services over $300 billion in student loans for more than 12 million customers, should benefit from continued new acquisitions of student loan portfolios, both Federally Guaranteed Student Loans (FFELP) as well as Private Education Loan. Also, the company’s efforts to grow asset recovery revenues including leveraging its acquisitions – Xtend Healthcare, and Gila LLC – should boost the top line to some extent.
Also, expenses are likely to remain stable as several costs related to composition and compensation pay expenses that were incurred in the first quarter are not likely to recur in the second quarter.
However, Navient’s activities during the quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter remained stable at 45 cents per share over the last seven days. (Read more: Navient to Report Q2 Earnings: What to Expect? )
Discover Financial Services (DFS - Free Report) : The Riverwoods, IL-based company’s card sales volume has been witnessing consistent progression owing to improved consumer spending and wallet share, credit quality trends and new card account over the last several quarters.
Also, the company’s growing student loan portfolio strengthens its line of banking products. While continued loan growth momentum is likely to aid in improving net interest income for the second quarter, provisions should increase as well.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Consumer Loan Stocks' Q2 Earnings Preview: NAVI, DFS
With the second-quarter 2016 earnings season in full swing, investors are keeping a close eye on the performance of the companies. The stressed first quarter that was plagued by several issues including slowdown of the Chinese economy, continued volatility in commodity prices, global growth uncertainties and low rates, largely affected the performance of the finance sector. However, the scenario in the second quarter seems to depict a better environment to some extent with positives including a rebound in oil prices and continued recovery of the U.S. economy.
Underlying loan demand remained stable during the second quarter, with overall growth in loans including commercial and industrial and commercial real estate loans. Also, demand for several consumer categories including card, auto as well as student loans remained strong.
Per our latest Earnings Preview article, overall earnings for the Finance sector in second-quarter 2016 are expected to be down 3.3% year over year. Also, revenues are expected to be down 0.5%. Notably, during the first quarter the sector witnessed a 6.9% decline in earnings while revenues improved 3.3%.
With most of the companies are set to release results, let’s have a look at what’s in store for the following firms, releasing results on Jul 19.
Navient Corporation (NAVI - Free Report) : Quarterly results of Navient, which services over $300 billion in student loans for more than 12 million customers, should benefit from continued new acquisitions of student loan portfolios, both Federally Guaranteed Student Loans (FFELP) as well as Private Education Loan. Also, the company’s efforts to grow asset recovery revenues including leveraging its acquisitions – Xtend Healthcare, and Gila LLC – should boost the top line to some extent.
Also, expenses are likely to remain stable as several costs related to composition and compensation pay expenses that were incurred in the first quarter are not likely to recur in the second quarter.
However, Navient’s activities during the quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter remained stable at 45 cents per share over the last seven days. (Read more: Navient to Report Q2 Earnings: What to Expect? )
NAVIENT CORP Price and EPS Surprise
NAVIENT CORP Price and EPS Surprise | NAVIENT CORP Quote
Discover Financial Services (DFS - Free Report) : The Riverwoods, IL-based company’s card sales volume has been witnessing consistent progression owing to improved consumer spending and wallet share, credit quality trends and new card account over the last several quarters.
Also, the company’s growing student loan portfolio strengthens its line of banking products. While continued loan growth momentum is likely to aid in improving net interest income for the second quarter, provisions should increase as well.
The Zacks Consensus Estimate for the quarter declined 1.4% to $1.42 per share over the last seven days. (Read more: Discover Financial Q2 Earnings: A Surprise in Store?)
DISCOVER FIN SV Price and EPS Surprise
DISCOVER FIN SV Price and EPS Surprise | DISCOVER FIN SV Quote
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>