Sallie Mae (SLM) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Company Overview - Sallie Mae (SLM) is expected to report quarterly earnings of $0.73 per share, reflecting a year-over-year decline of 33.6% [2] - Revenues are anticipated to be $373.29 million, down 3.5% from the same quarter last year [2] - The consensus EPS estimate has been revised down by 24.54% over the last 30 days, indicating a reassessment by analysts [2] Earnings Prediction Insights - The Zacks Earnings ESP model shows a positive Earnings ESP of +18.57% for Sallie Mae, suggesting analysts have recently become more optimistic about the company's earnings prospects [5] - Sallie Mae currently holds a Zacks Rank of 2, indicating a "Buy" rating, which combined with the positive Earnings ESP suggests a high likelihood of beating the consensus EPS estimate [6][5] Historical Performance - In the last reported quarter, Sallie Mae had an earnings surprise of +16.51%, posting earnings of $1.27 per share against an expectation of $1.09 [7] - Over the past four quarters, Sallie Mae has only beaten consensus EPS estimates once [7] Market Context - The broader industry context includes Capital One (COF), which is expected to report earnings of $3.28 per share, a year-over-year decline of 6.8%, with revenues projected at $9.51 billion, up 5.5% [9] - Capital One has an Earnings ESP of 1.52% and a Zacks Rank of 3, indicating a moderate likelihood of beating the consensus EPS estimate [9]