Student loan provider Sallie Mae (NASDAQ: SLM) will be announcing earnings results this Thursday after market close. Here’s what to look for.
Sallie Mae beat analysts’ revenue expectations last quarter, reporting revenues of $560 million, down 3.6% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Sallie Mae 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 Sallie Mae’s revenue to grow 1.2% year on year, a reversal from the 21.5% 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 will stay the course heading into earnings. Sallie Mae has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sallie Mae’s peers in the consumer finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Capital One delivered year-on-year revenue growth of 26%, meeting analysts’ expectations, and Synchrony Financial reported revenues up 1.9%, falling short of estimates by 0.7%.
Read our full analysis of Capital One’s results here and Synchrony Financial’s results here.
There has been positive sentiment among investors in the consumer finance segment, with share prices up 5.8% on average over the last month. Sallie Mae is up 10.3% during the same time and is heading into earnings with an average analyst price target of $28.73 (compared to the current share price of $25.20).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
