Why Is Navient (NAVI) Down 9% Since Last Earnings Report?
NavientNavient(US:NAVI) ZACKS·2026-02-27 17:36

Core Viewpoint - Navient's recent earnings report indicates a mixed performance, with adjusted earnings per share (EPS) surpassing estimates but overall financial metrics showing declines, leading to a negative market reaction [2][3][5]. Financial Performance - For Q4 2025, Navient reported adjusted EPS of 39 cents, exceeding the Zacks Consensus Estimate of 31 cents, compared to 25 cents in the prior-year quarter [2]. - The company experienced a GAAP net loss of $5 million, contrasting with a net income of $24 million in the same quarter last year [4]. - Net interest income (NII) declined 3.7% year over year to $129 million, missing the Zacks Consensus Estimate by 3.3% [6]. - Total expenses decreased by 34.2% year over year to $100 million [6]. Segment Performance - The Federal Education Loans segment generated a net income of $27 million, significantly up from $10 million in the prior year [7]. - The Consumer Lending segment reported a net income of $25 million, down 32.4% from the year-ago quarter [7]. - The delinquency rate for private education loans greater than 30 days increased to 6.3% from 6.1% in the prior year [8]. Liquidity and Capital Management - As of December 31, 2025, the company had $637 million in total unrestricted cash and liquid investments [9]. - In Q4, Navient paid $15 million in common stock dividends and repurchased shares for $26 million [10]. 2026 Outlook - Core EPS is projected to be between 65 cents and 80 cents, with loan originations expected to reach $4 billion, a 60% increase compared to 2025 [11]. - Total expenses for the full year 2026 are anticipated to be $350 million [11]. Market Reaction and Estimates - Following the earnings release, there has been a downward trend in consensus estimates, with a shift of -8.63% [12]. - Navient currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [14].

Why Is Navient (NAVI) Down 9% Since Last Earnings Report? - Reportify