Navient's Q3 Earnings on the Deck: Here's What You Should Know

Core Insights - Navient Corporation (NAVI) is set to report its third-quarter 2025 results on October 29, with expectations of revenue growth but a decline in earnings year-over-year [1][9] Revenue Expectations - Quarterly revenues are projected to rise by 1.6% to $142.2 million, while earnings per share (EPS) are expected to drop by 35.7% to 18 cents [3][9] - The Consumer Lending segment is anticipated to show a decent rise in revenues due to solid consumer loan demand, while the Federal Education Loans segment may face pressure from lower prepayment levels and subdued originations [4] - The consensus estimate for net interest income (NII) is $142.2 million, reflecting an 8.6% sequential increase, with specific estimates of $50.3 million for Federal Education loans (up 2.7%) and $107.8 million for consumer lending (down 4.6%) [5] - Total non-interest income is estimated to decline by 27.5% sequentially to $23.9 million [6] Expense Management - Ongoing cost-control initiatives are expected to enhance operating efficiency and reduce expenses, aided by strategic actions such as divestitures and workforce reductions [7][9] Earnings Surprise History - NAVI has a notable earnings surprise history, having outperformed estimates in three of the last four quarters, with an average earnings surprise of 17.97% [2] Earnings ESP and Zacks Rank - The Earnings ESP for Navient is -3.44%, indicating a lower likelihood of an earnings beat, and the company currently holds a Zacks Rank of 3 (Hold) [8][10]