S&P 500 (NYSE:SPY) component SLM Corporation (NYSE:SLM) reported its results for the second quarter. SLM originates, services and collects student loans. It provides funding, delivery and servicing support for education loans in the United States.
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SLM Corporation Earnings Cheat Sheet
Results: Reported a profit of $292 million (59 cents per diluted share) in the quarter. SLM Corporation had a net loss of $5.6 million or a loss 2 cents per share in the year-earlier quarter.
Revenue: Fell 3.9% to $1.4 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: SLM Corporation beat the mean analyst estimate of 54 cents per share. It beat the average revenue estimate of $717.7 million.
Quoting Management: “We continue to grow our private credit business and find productivity gains in challenging economic conditions,” said Albert L. Lord, vice chairman and CEO. “We head into this academic year with loan products that promote and reward in-school payments. The performance of these loans over recent years foreshadows better credit ratings for our customers and lower defaults for Sallie Mae.”
For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 3 cents in the first quarter and by one cent in the fourth quarter of the last fiscal year.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 52 cents per share from 51 cents. Over the past three months, the average estimate for the fiscal year has climbed from $2.12 per to share to $2.17.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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