The market expects Navient (NAVI) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

Navient Corp NAVI ended the third quarter with an adjusted cash position of $572 million, or $5.35 per share.That’s adjusted for an unsecured debt maturity and $65 million worth of share repurchases expected in the fourth quarter, according to Seaport Research Partners.The Navient Analyst: Analyst Bill Ryan upgraded the rating for Navient from Neutral to Buy, while establishing a price target of $18.The Navient Thesis: The consumer lending segment is valued at 7X of the 2025 estimate for the company, or $12 ...

HERNDON, Va., Jan. 08, 2025 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) will host an audio webcast to review its 2024 fourth quarter and year-end financial results on Wednesday, Jan. 29, 2025, at 8:00 a.m. Eastern Time. The results are scheduled to be released the same day by 7:00 a.m. on Navient.com/investors. In addition to being available on the company’s investor website, the results will be filed with the SEC on a Form 8-K available at SEC.gov. The webcast and presentation slides also will be available ...

Stock Performance - The stock has underperformed the industry and peers like Capital One Financial Corporation (COF) and Discover Financial Services (DFS) in the past six months [1] - NAVI shares touched a 52-week low of $12.96 and closed at $13.05, declining 14.3% in the past three months [7] Capital Distribution and Debt - Competitors COF and DFS have sustainable capital distribution plans with quarterly dividends of 60 cents and 70 cents per share, respectively [2] - COF and ALLY have payout ratios of 18% and 23%, with debt-to-equity ratios below the industry average [2] - NAVI pays a common stock dividend of 16 cents per share with a payout ratio of 31% and a debt-to-equity ratio of 16.59%, significantly higher than the industry average of 1.21% [6] - As of Sept 30, 2024, NAVI held total debt worth $50 billion with cash and cash equivalents of $1.14 billion, raising concerns about its ability to manage debt obligations [18] Business Divestiture and Focus - NAVI entered an agreement to sell its Government Services business to Gallant Capital Partners, LLC, expected to close in Q1 2025, enabling the company to focus on core operations in education finance and business processing solutions [3][13] - The divestiture includes 1,200 employees and is part of NAVI's strategy to optimize its business model and concentrate on primary areas of expertise [3][13] Financial Performance and Growth - NAVI's servicing revenues witnessed a negative CAGR of 33.1% over the past three years (2020-2023) and remained flat year over year in the first nine months of 2024 [4] - Net interest income (NII) saw a negative CAGR of 11.7% over the past three years (2020-2023) and continued to decline in the first nine months of 2024 [19] - NAVI aims to improve operating efficiency with cost-control initiatives, seeing a CAGR of 4.9% in expense reduction over the last four years (ended 2023) [12] - NAVI implemented cost-reduction initiatives, including outsourcing servicing to MOHELA and streamlining its organizational structure, aiming for an 80-90% reduction in its workforce [20] Impact of Federal Reserve Rate Cuts - NAVI is poised to benefit from the Federal Reserve's interest rate cuts starting in September 2024, with the most recent reduction on Dec 18, 2024 [5] - Lower interest rates are expected to increase demand for consumer loans, strengthening origination volumes and retail loan growth, likely leading to a rebound in net financing revenues [19] Analyst Sentiment and Future Prospects - Analysts are pessimistic about NAVI's growth prospects, with the Zacks Consensus Estimate for 2024 and 2025 earnings moving downward in the past seven days [15] - Regulatory changes may result in higher-than-anticipated prepayment rates on NAVI's loan portfolio, and failure to acquire loans or develop alternative revenue sources could pressure its top line [9] - NAVI's long-term prospects look bright with potential improvements in financial health and stock performance driven by cost-control initiatives and Fed rate cuts [14][19]

Navient Corporation (NAVI) has entered an agreement to sell its Government Services business to an affiliate of Gallant Capital Partners, LLC, a Los Angeles-based investment firm. Navient’s Government Services business includes Navient Business Processing Group, Duncan Solutions, Gila, Pioneer Credit Recovery and Navient BPO. About 1,200 employees will be included in the transaction, which is expected to close in the first quarter of 2025.Rationale Behind NAVI’s Sale of Government Services UnitNavient's Gov ...

HERNDON, Va., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) announced today that it has reached an agreement to sell its Government Services business to an affiliate of Gallant Capital Partners, LLC, a Los Angeles-based investment firm. Navient’s Government Services business includes Navient Business Processing Group, Duncan Solutions, Gila (D.B.A Municipal Services Bureau), Pioneer Credit Recovery and Navient BPO. Approximately 1,200 employees will be included in the transaction, which is expect ...

HERNDON, Va., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) announced that its board of directors approved a 2024 fourth quarter dividend of $0.16 per share on the company's common stock. The fourth quarter 2024 dividend will be paid on Dec. 20, 2024, to shareholders of record at the close of business on Dec. 6, 2024. About NavientNavient (Nasdaq: NAVI) provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achiev ...

HERNDON, Va., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) has been recognized by The Forum of Executive Women as a Champion of Board Diversity. This award annually honors the top public companies in the Philadelphia region with boards comprised of at least 30% women. The Forum of Executive Women's annual Women in Leadership Report, which will be released in November and is a collaboration with PwC, provides an annual examination on diversity in the boardrooms and executive suites of the top 100 ...

This Form 10-Q contains "forward-looking" statements and other information that is based on management's current expectations as of the date of this report. Statements that are not historical facts, including statements about our beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "may," "could," "should," "goals," ...

Navient Corporation (NASDAQ:NAVI) Q3 2024 Results Conference Call October 30, 2024 8:00 AM ET Company Participants Jen Earyes - IR David Yowan - CEO Joe Fisher - CFO Conference Call Participants Bill Ryan - Seaport Research Partners Sanjay Sakhrani - KBW Rick Shane - JPMorgan Mark DeVries - Deutsche Bank Terry Ma - Barclays Moshe Orenbuch - TD Cowen Nate Richam - Bank of America Jeff Adelson - Morgan Stanley Ryan Shelly - Bank of America Operator Good day, and thank you for standing by. Welcome to the Navi ...