Sallie Mae (SLM) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - The market anticipates Sallie Mae (SLM) to report a year-over-year earnings increase despite lower revenues, with earnings expected to be $1.08 per share, reflecting a +129.8% change, while revenues are projected at $378.93 million, down 6.5% from the previous year [1][2]. Earnings Expectations - The consensus EPS estimate has been revised down by 19.62% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [2]. - The Most Accurate Estimate for Sallie Mae is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.01%, which complicates the prediction of an earnings beat [5][6]. Earnings Surprise History - In the last reported quarter, Sallie Mae was expected to post earnings of $0.87 per share but only achieved $0.72, resulting in a surprise of -17.24% [7]. - Over the past four quarters, Sallie Mae has only beaten consensus EPS estimates once, suggesting a pattern of underperformance [7]. Industry Context - Navient (NAVI), another player in the financial consumer loans industry, is expected to report earnings of $0.58 per share, reflecting a year-over-year decline of -45.3%, with revenues projected at $188.04 million, down 25.7% [9]. - Navient's consensus EPS estimate has also been revised down by 5.7% in the last 30 days, and it carries a Zacks Rank of 5 (Strong Sell), indicating a challenging outlook for beating consensus estimates [9].