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Compared to Estimates, Navient (NAVI) Q2 Earnings: A Look at Key Metrics

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Navient (NAVI - Free Report) reported $136 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 38.5%. EPS of $0.48 for the same period compares to $0.70 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $157.27 million, representing a surprise of -13.53%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being $0.42.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Navient performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net interest margin, Consumer Lending segment: 2.9% compared to the 3% average estimate based on two analysts.
  • Net interest margin, Federal Education Loan segment: 0.4% versus the two-analyst average estimate of 0.5%.
  • Servicing revenue: $18 million versus $16.34 million estimated by four analysts on average.
  • Other income: $4 million compared to the $5.75 million average estimate based on four analysts.
  • Asset recovery and business processing revenue: $81 million versus $81.75 million estimated by four analysts on average.
  • Total Non Interest Income (Core): $103 million versus the three-analyst average estimate of $106.78 million.
  • Total core other income- Consumer Lending: $3 million versus the two-analyst average estimate of $4.43 million.
  • Total core other income- Business Processing: $81 million versus $84.01 million estimated by two analysts on average.
  • Total core other income- Federal Education Loans: $17 million versus the two-analyst average estimate of $16 million.
  • Total core other income- Other: $2 million versus $2.25 million estimated by two analysts on average.
  • Net interest income (loss)- Federal Education Loans (Core): $33 million versus the two-analyst average estimate of $47.39 million.
  • Net Interest Income (Core): $136 million versus $153.71 million estimated by two analysts on average.
View all Key Company Metrics for Navient here>>>

Shares of Navient have returned +8.7% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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