Education finance company Nelnet (NYSE: NNI) will be reporting results this Thursday after the bell. Here’s what you need to know.
Nelnet missed analysts’ revenue expectations last quarter, reporting revenues of $358.7 million, down 30.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.
Is Nelnet 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 Nelnet’s revenue to decline 2% year on year, a reversal from the 50.4% increase 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. Nelnet has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Nelnet’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Sallie Mae’s revenues decreased 31.2% year on year, missing analysts’ expectations by 18%, and SoFi reported revenues up 44.4%, topping estimates by 8.5%. Sallie Mae traded down 10.8% following the results while SoFi was up 18.5%.
Read our full analysis of Sallie Mae’s results here and SoFi’s results here.
There has been positive sentiment among investors in the consumer finance segment, with share prices up 4.2% on average over the last month. Nelnet is down 1.9% during the same time and is heading into earnings with an average analyst price target of $125 (compared to the current share price of $122.66).
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