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Compared to Estimates, Sallie Mae (SLM) Q4 Earnings: A Look at Key Metrics

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Sallie Mae (SLM - Free Report) reported $385.89 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.2%. EPS of $0.72 for the same period compares to -$0.33 a year ago.

The reported revenue represents a surprise of +1.76% over the Zacks Consensus Estimate of $379.2 million. With the consensus EPS estimate being $0.87, the EPS surprise was -17.24%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Sallie Mae performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Interest Margin: 5.4% versus 5.3% estimated by four analysts on average.
  • Average Balances-Interest earning assets: $28.52 billion versus the three-analyst average estimate of $29.67 billion.
  • Net Interest Income: $385.89 million compared to the $378.62 million average estimate based on five analysts.
  • Gains on sales of loans, net: $35.55 million versus the five-analyst average estimate of $50.79 million.
  • Total Non-Interest Income: $57.11 million versus $72.82 million estimated by five analysts on average.
  • Other income: $20.87 million versus $22.37 million estimated by three analysts on average.
View all Key Company Metrics for Sallie Mae here>>>

Shares of Sallie Mae have returned +0.4% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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