SLM Earnings: Here’s Why Investors are Selling the News

SLM Corporation (NYSE:SLM) delivered a profit and beat Wall Street’s expectations. Shares are down after hours.

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SLM Corporation Earnings Cheat Sheet

Results: Net income decreased -49.71% to $257 million (55 cents per diluted share) in the quarter versus a net gain of $511 million in the year-earlier quarter.

Actual vs. Wall St. Expectations: SLM Corporation reported adjusted net income of 55 cents per share. By that measure, the company beat the mean analyst estimate of $0.53.

Quoting Management: Albert L. Lord, vice chairman & CEO said, “As expected, charge-offs accelerated in the fourth quarter largely due to recent reductions in forbearance. We still view the economy warily and commit to help customers manage their borrowing and succeed in its payoff.”

Key Stats:

Net income increased 36.7% from $188 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.58 to a profit $0.57. For the current year, the average estimate is a profit of $2.15, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)