Navient(US:NAVI) ZACKS·2024-10-30 15:51Core Insights - Navient Corporation (NAVI) reported third-quarter 2024 adjusted earnings per share of 28 cents, exceeding the Zacks Consensus Estimate of 23 cents, but down from 47 cents in the prior-year quarter [1] - The results were primarily driven by an increase in other income and a decline in provision for loan losses, although net interest income (NII) decreased and expenses rose [1][3] Financial Performance - GAAP net loss for Navient was $2 million compared to a net income of $79 million in the prior-year quarter [2] - NII fell significantly to $140 million from $280 million year over year, missing the Zacks Consensus Estimate of $150.04 million [3] - Total other income increased to $276 million from $131 million year over year, attributed to a gain on the sale of a subsidiary [3] - Provision for loan losses was $42 million, down 41.7% from the prior-year quarter [3] - Total expenses rose 42.5% year over year to $342 million [3] Segment Performance - Federal Education Loans segment generated a net income of $27 million, a decline of 71.3% year over year, with net FFELP loans at $31.5 billion, down 4.3% sequentially [4] - Consumer Lending segment reported a net income of $27 million, decreasing 51.8% from the year-ago quarter, with a private education loan delinquency rate over 30 days at 5.3%, up from 4.7% [4] - Business Processing segment net income surged to $178 million from $9 million in the year-ago quarter [5] Liquidity and Capital Management - As of September 30, 2024, Navient had $1.14 billion in total unrestricted cash and liquid investments [7] - The company paid out $17 million in common stock dividends and repurchased shares for $33 million in the third quarter, with $176 million remaining in share-repurchase authority [7] Strategic Outlook - Navient's diversified business segments are expected to support revenue growth, and strategic cost control measures are anticipated to bolster financial performance in the upcoming period [8]