Compared to Estimates, Navient (NAVI) Q2 Earnings: A Look at Key Metrics

Core Insights - Navient (NAVI) reported a revenue of $136 million for the quarter ended June 2024, marking a year-over-year decline of 38.5% and an EPS of $0.48 compared to $0.70 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $157.27 million, resulting in a surprise of -13.53%, while the EPS exceeded expectations with a surprise of +14.29% against a consensus estimate of $0.42 [3] Financial Metrics - Net interest margin for the Consumer Lending segment was 2.9%, slightly below the average estimate of 3% [6] - Net interest margin for the Federal Education Loan segment was 0.4%, compared to the average estimate of 0.5% [6] - Servicing revenue was reported at $18 million, exceeding the average estimate of $16.34 million [6] - Other income was $4 million, below the average estimate of $5.75 million [6] - Asset recovery and business processing revenue was $81 million, slightly below the average estimate of $81.75 million [6] - Total Non-Interest Income (Core) was $103 million, compared to the average estimate of $106.78 million [6] - Net interest income (loss) for Federal Education Loans (Core) was $33 million, below the average estimate of $47.39 million [6] - Total core other income for Consumer Lending was $3 million, below the average estimate of $4.43 million [6] - Total core other income for Business Processing was $81 million, slightly below the average estimate of $84.01 million [6] - Total core other income for Federal Education Loans was $17 million, slightly above the average estimate of $16 million [6] - Total core other income for Other was $2 million, below the average estimate of $2.25 million [6] - Net Interest Income (Core) was $136 million, below the average estimate of $153.71 million [6] Stock Performance - Shares of Navient have returned +8.7% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [5] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [5]