Navient (NAVI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Navient (NAVI) reported a revenue of $134 million for the quarter ended December 2024, reflecting a decline of 30.6% year-over-year [1] - The earnings per share (EPS) for the quarter was $0.25, down from $0.70 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $151.05 million, resulting in a surprise of -11.29% [1] - The company achieved an EPS surprise of +25.00%, with the consensus EPS estimate being $0.20 [1] Performance Metrics - Navient's shares have returned +11% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Key Financial Metrics - Net interest margin for the Consumer Lending segment was reported at 2.8%, slightly below the average estimate of 2.9% [4] - Net interest margin for the Federal Education Loan segment was 0.4%, compared to the estimated 0.5% [4] - Asset recovery and business processing revenue reached $43 million, exceeding the average estimate of $41.92 million [4] - Servicing revenue was reported at $6 million, significantly lower than the average estimate of $13.50 million [4] - Other income amounted to $8 million, slightly above the average estimate of $7.27 million [4] - Net interest income (loss) for Federal Education Loans (Core) was $35 million, below the average estimate of $40.48 million [4] - Total Non-Interest Income (Core) was reported at $29 million, far below the average estimate of $75.44 million [4] - Net Interest Income (Core) was $134 million, slightly below the average estimate of $136.16 million [4]