Student loan servicer Navient (NASDAQ: NAVI) will be reporting earnings this Wednesday before market hours. Here’s what you need to know.
Navient missed analysts’ revenue expectations last quarter, reporting revenues of $144 million, down 11.7% year on year. It was a disappointing quarter for the company, with and a significant miss of analysts’ revenue estimates.
Is Navient a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Navient’s revenue to decline 28.9% year on year, a further deceleration from the 26.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Navient has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Navient’s peers in the consumer finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sallie Mae’s revenues decreased 3.6% year on year, beating analysts’ expectations by 3.9%, and Bread Financial reported revenues up 4.9%, topping estimates by 2.3%. Sallie Mae traded up 1.6% following the results while Bread Financial was down 6.9%.
Read our full analysis of Sallie Mae’s results here and Bread Financial’s results here.
There has been positive sentiment among investors in the consumer finance segment, with share prices up 13% on average over the last month. Navient is up 9.6% during the same time and is heading into earnings with an average analyst price target of $8.81 (compared to the current share price of $8.88).
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