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Navient (NAVI) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

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Navient (NAVI - Free Report) reported $163 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 35.6%. EPS of $0.63 for the same period compares to $1.06 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $188.04 million, representing a surprise of -13.32%. The company delivered an EPS surprise of +8.62%, with the consensus EPS estimate being $0.58.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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

  • Net interest margin, Consumer Lending segment: 3% versus the two-analyst average estimate of 3.3%.
  • Net interest margin, Federal Education Loan segment: 0.6% versus the two-analyst average estimate of 0.6%.
  • Asset recovery and business processing revenue: $77 million versus $83.02 million estimated by four analysts on average.
  • Servicing revenue: $17 million compared to the $15.44 million average estimate based on four analysts.
  • Other income: $9 million versus $5.59 million estimated by four analysts on average.
  • Net interest income (loss)- Federal Education Loans (Core): $53 million versus the two-analyst average estimate of $59.18 million.
  • Total core other income- Other: $5 million versus $2.06 million estimated by two analysts on average.
  • Total core other income- Consumer Lending: $4 million versus the two-analyst average estimate of $3.12 million.
  • Total core other income- Business Processing: $77 million versus the two-analyst average estimate of $83.03 million.
  • Total core other income- Federal Education Loans: $17 million versus $15.87 million estimated by two analysts on average.
  • Total Non Interest Income (Core): $103 million compared to the $107.04 million average estimate based on two analysts.
  • Net Interest Income (Core): $163 million versus the two-analyst average estimate of $179.58 million.
View all Key Company Metrics for Navient here>>>

Shares of Navient have returned -2.7% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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