Analysts Estimate Navient (NAVI) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Navient (NAVI) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the earnings report expected on October 30, 2024, potentially impacting stock price based on actual results compared to estimates [1] Group 1: Earnings Estimates - The consensus estimate for Navient's quarterly earnings is $0.23 per share, reflecting a year-over-year decrease of 72.6% [2] - Expected revenues for the quarter are $150.04 million, down 46.4% from the same quarter last year [2] Group 2: Estimate Revisions - The consensus EPS estimate has been revised 0.24% higher in the last 30 days, indicating a slight reassessment by analysts [3] - The Most Accurate Estimate for Navient is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.85%, suggesting a bearish outlook from analysts [6] Group 3: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [5] - Navient currently holds a Zacks Rank of 3, making it challenging to predict a beat against the consensus EPS estimate [6] Group 4: Historical Performance - In the last reported quarter, Navient exceeded expectations by posting earnings of $0.48 per share against an expected $0.42, resulting in a surprise of +14.29% [7] - Over the past four quarters, Navient has beaten consensus EPS estimates three times [7] Group 5: Market Reaction Considerations - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [8] - While Navient does not appear to be a compelling earnings-beat candidate, investors should consider additional factors before making investment decisions [8]