SLM Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component SLM Corp (NYSE:SLM) will unveil its latest earnings on Wednesday, July 20, 2011. SLM Corporation originates, services and collects student loans. It provides funding, delivery and servicing support for education loans in the US.

SLM Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 41 cents per share, a rise of 5.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 40 cents. For the year, analysts are projecting net income of $1.74 per share, a decline of 9.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 48 cents per share against a mean estimate of net income of 41 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $753.8 million in revenue this quarter, a decline of 0.7% from the year ago quarter. Analysts are forecasting total revenue of $2.99 billion for the year, a decline of 14.1% from last year’s revenue of $3.48 billion.

Analyst Ratings: Analysts are bullish on SLM as three analysts rate it as a buy, none rate it as a sell and three rate it as a hold.

Key Stats:

Revenue has fallen for the past three quarters. In first quarter, revenue declined 14.2% to $1.41 billion while the figure fell 12.7% in fourth quarter of the last fiscal year from the year earlier and 11.6% in the third 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), QC Holdings, Inc. (NASDAQ:QCCO), Advance America, Cash Advance Centers (NYSE:AEA), World Acceptance Corp. (NASDAQ:WRLD).

Stock Price Performance: During April 18, 2011 to July 14, 2011, the stock price had risen $1.75 (12.2%) from $14.40 to $16.15. The stock price saw one of its best stretches over the last year between July 21, 2010 and August 2, 2010 when shares rose for nine-straight days, rising 18.8% (+$1.93) over that span. It saw one of its worst periods between April 7, 2011 and April 14, 2011 when shares fell for six-straight days, falling 6% (-92 cents) over that span. Shares are up $3.63 (+29%) year to date.

(Source: Xignite Financials)

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