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What to Expect From Navient (NAVI) This Earnings Season?
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Navient Corporation (NAVI - Free Report) is scheduled to report first-quarter 2018 results on Apr 24, after the market closes. While the company is expected to witness year-over-year growth in earnings, revenues might decline.
In the fourth quarter, Navient surpassed the Zacks Consensus Estimate for earnings on higher fee income. However, lower net interest income and higher expenses were the headwinds.
The company has a decent surprise history. It surpassed earnings estimates in three of the trailing four quarters, delivering an average positive surprise.
The company’s activities during the first quarter were inadequate to win analysts’ confidence, as reflected by 2.4% decline in the Zacks Consensus Estimate for earnings over the last 30 days. However, the figure represents anincrease of nearly 14% on a year-over-year basis.
Loans Might Decline: Navient’s reputation remains affected by its involvement in lawsuits, which is likely to have impacted the amount of loans originations the company witnessed during the quarter.
Increased Expenses From Investment in Technology: Navient’s efforts to become a technologically advanced company along with its aim to expand services outside the educational industry is likely to have resulted in elevated expenses.
Easing Margin Pressure: Navient’s prime-indexed assets lag the rise in short-term rates by a quarter. As a result, pressure on net interest margin will likely ease and support its top line.
Let’s have a look at what our quantitative model predicts:
Our proven model doesn’t conclusively show that Navient will be able to beat the Zacks Consensus Estimate this time around, as it does not have the right combination of two key components. Note that a stock with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better has significantly higher chances of beating estimates.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Navient is -0.20%.
Zacks Rank: Navient carries a Zacks Rank of 3.
Stocks That Warrant a Look
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Capital One Financial Corporation (COF - Free Report) has an Earnings ESP of +0.79% and carries a Zacks Rank of 3. The company is slated to release results on Apr 24.
New York Community Bancorp (NYCB - Free Report) is slated to release results on Apr 25. It has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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What to Expect From Navient (NAVI) This Earnings Season?
Navient Corporation (NAVI - Free Report) is scheduled to report first-quarter 2018 results on Apr 24, after the market closes. While the company is expected to witness year-over-year growth in earnings, revenues might decline.
In the fourth quarter, Navient surpassed the Zacks Consensus Estimate for earnings on higher fee income. However, lower net interest income and higher expenses were the headwinds.
The company has a decent surprise history. It surpassed earnings estimates in three of the trailing four quarters, delivering an average positive surprise.
The company’s activities during the first quarter were inadequate to win analysts’ confidence, as reflected by 2.4% decline in the Zacks Consensus Estimate for earnings over the last 30 days. However, the figure represents anincrease of nearly 14% on a year-over-year basis.
Navient Corporation Price and EPS Surprise
Navient Corporation Price and EPS Surprise | Navient Corporation Quote
Factors to Influence Q1 Results
Loans Might Decline: Navient’s reputation remains affected by its involvement in lawsuits, which is likely to have impacted the amount of loans originations the company witnessed during the quarter.
Increased Expenses From Investment in Technology: Navient’s efforts to become a technologically advanced company along with its aim to expand services outside the educational industry is likely to have resulted in elevated expenses.
Easing Margin Pressure: Navient’s prime-indexed assets lag the rise in short-term rates by a quarter. As a result, pressure on net interest margin will likely ease and support its top line.
Let’s have a look at what our quantitative model predicts:
Our proven model doesn’t conclusively show that Navient will be able to beat the Zacks Consensus Estimate this time around, as it does not have the right combination of two key components. Note that a stock with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better has significantly higher chances of beating estimates.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Navient is -0.20%.
Zacks Rank: Navient carries a Zacks Rank of 3.
Stocks That Warrant a Look
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Capital One Financial Corporation (COF - Free Report) has an Earnings ESP of +0.79% and carries a Zacks Rank of 3. The company is slated to release results on Apr 24.
BOK Financial Corporation (BOKF - Free Report) is slated to report first-quarter 2018 results on Apr 25. It has an Earnings ESP of +0.24% and a Zacks Rank#2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New York Community Bancorp (NYCB - Free Report) is slated to release results on Apr 25. It has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>