SLM Corp Earnings: Swing to a Loss After Two Straight Profit Quarters

S&P 500 (NYSE:SPY) component SLM Corporation (NYSE:SLM) swung to a loss in the second quarter, missing analysts’ forecast. SLM Corporation originates, services and collects student loans. It provides funding, delivery and servicing support for education loans in the US.

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SLM Earnings Cheat Sheet for the Second Quarter

Results: Swung to a loss of $6 million (2 cents per diluted share) in the quarter. SLM Corporation had a net income of $337.8 million or 63 cents per share in the year earlier quarter.

Actual vs. Wall St. Expectations: SLM fell short of the mean analyst estimate of 41 cents per share.

Quoting Management: “We today report solid second quarter performance.I am particularly pleased we continue to reduce credit costs and operating expenses as expected. I am also encouraged by private credit growth in a subdued economy,” said Albert L. Lord, vice chairman and CEO. “Sallie Mae is focused on our customers’ financial needs and enthusiastically builds new products to help students and families save and pay for college”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 7 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

SLM’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $174.7 million in the first quarter and a profit of $447.4 million in the fourth quarter of the last fiscal year.

Competitors to Watch: Nelnet, Inc. (NYSE:NNI), The Student Loan Corp. (NYSE:STU), Discover Financial Services (NYSE:DFS), American Express Company (NYSE:AXP), The First Marblehead Corp. (NYSE:FMD), Federal National Mortgage Association (FNMA), QC Holdings, Inc. (NASDAQ:QCCO), Advance America, Cash Advance Centers (NYSE:AEA), World Acceptance Corp. (NASDAQ:WRLD), and Federal Home Loan Mortgage Corp (FMCC).

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(Source: Xignite Financials)