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Navient's Q2 Earnings in the Cards: Here's What to Expect
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Key Takeaways
NAVI's Q2 revenues are expected to rise 5% while earnings may fall nearly 40% year over year.
Consumer loan demand remained solid, but federal loan volumes and prepayments likely hurt revenues.
Cost-cutting initiatives are projected to lower NAVI's Q2 expenses and boost operating efficiency.
Navient Corporation (NAVI - Free Report) is scheduled to report second-quarter 2025 results on July 30, before the opening bell. Its quarterly revenues are expected to have risen, while earnings are expected to have declined on a year-over-year basis.
In the last reported quarter, NAVI’s adjusted earnings beat the Zacks Consensus Estimate. The results were driven by lower expenses. However, a rise in provision for loan losses and a decrease in net interest income (NII) were headwinds.
NAVI has an impressive earnings surprise history. Its earnings outpaced estimates in each of the trailing four quarters and missed once, with the average earnings surprise being 27.10%.
The Zacks Consensus Estimate for earnings of 29 cents per share has remained unchanged in the past week. The figure indicates a 39.6% plunge from the year-ago reported figure.
The consensus estimate for sales of $142.8 million suggests a rise of 5%.
Factors to Influence Navient’s Results in Q2
Revenues: Per the Fed’s latest data, consumer loan demand was stable in the second quarter. The demand remained solid on account of a strong labor market despite tariff uncertainties. As such, Navient’s Consumer Lending segment is expected to have recorded a decent rise in revenues. However, elevated prepayment due to student loan forgiveness and subdued origination volume are likely to have limited the company’s revenue growth in the Federal Education Loans segment.
The Zacks Consensus Estimate for NII (Core) is pegged at $142.9 million, indicating a sequential decline of 0.8%. The consensus estimate for NII (Federal Education loan) is pegged at $48.6 million, suggesting a slight rise on a sequential basis. The Zacks Consensus Estimate for NII (consumer lending) is pegged at $111.5 million, implying a decline of 1.4%.
The consensus estimate for servicing revenues is pegged at $10 million, indicating a 23.3% fall from the prior quarter. The Zacks Consensus Estimate for asset recovery and business processing revenues of $6.8 million implies a 70.3% decline.
The Zacks Consensus Estimate for total non-interest income of $25.1 million indicates a 50.7% decline sequentially.
Expenses: Navient's cost-control measures are expected to have boosted operating efficiency and lowered expenses in the second quarter. Last year, the company announced strategic actions, which are expected to have resulted in a further decline in operating expenses in the to-be-reported quarter.
What the Zacks Model Reveals for Navient
NAVI does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Navient is -7.66%.
Capital One’s (COF - Free Report) second-quarter 2025 adjusted earnings of $5.48 per share surpassed the Zacks Consensus Estimate of $3.83. The bottom line also compared favorably with $4.06 in the prior quarter.
COF’s results benefited from higher NII and non-interest income. Also, loans and deposits improved in the quarter. However, the increase in expenses and jump in provisions were undermining factors.
Ally Financial’s (ALLY - Free Report) second-quarter 2025 adjusted earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 78 cents. Further, the bottom line reflected a jump of 35.6% from the year-ago quarter.
Results benefited from a rise in net finance revenues and other revenues. Further, lower non-interest expenses and reduced provision provided support. However, a decline in net finance receivables and lower loans and deposits were the undermining factors for ALLY.
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Navient's Q2 Earnings in the Cards: Here's What to Expect
Key Takeaways
Navient Corporation (NAVI - Free Report) is scheduled to report second-quarter 2025 results on July 30, before the opening bell. Its quarterly revenues are expected to have risen, while earnings are expected to have declined on a year-over-year basis.
In the last reported quarter, NAVI’s adjusted earnings beat the Zacks Consensus Estimate. The results were driven by lower expenses. However, a rise in provision for loan losses and a decrease in net interest income (NII) were headwinds.
NAVI has an impressive earnings surprise history. Its earnings outpaced estimates in each of the trailing four quarters and missed once, with the average earnings surprise being 27.10%.
Navient Corporation Price and EPS Surprise
Navient Corporation price-eps-surprise | Navient Corporation Quote
The Zacks Consensus Estimate for earnings of 29 cents per share has remained unchanged in the past week. The figure indicates a 39.6% plunge from the year-ago reported figure.
The consensus estimate for sales of $142.8 million suggests a rise of 5%.
Factors to Influence Navient’s Results in Q2
Revenues: Per the Fed’s latest data, consumer loan demand was stable in the second quarter. The demand remained solid on account of a strong labor market despite tariff uncertainties. As such, Navient’s Consumer Lending segment is expected to have recorded a decent rise in revenues. However, elevated prepayment due to student loan forgiveness and subdued origination volume are likely to have limited the company’s revenue growth in the Federal Education Loans segment.
The Zacks Consensus Estimate for NII (Core) is pegged at $142.9 million, indicating a sequential decline of 0.8%. The consensus estimate for NII (Federal Education loan) is pegged at $48.6 million, suggesting a slight rise on a sequential basis. The Zacks Consensus Estimate for NII (consumer lending) is pegged at $111.5 million, implying a decline of 1.4%.
The consensus estimate for servicing revenues is pegged at $10 million, indicating a 23.3% fall from the prior quarter. The Zacks Consensus Estimate for asset recovery and business processing revenues of $6.8 million implies a 70.3% decline.
The Zacks Consensus Estimate for total non-interest income of $25.1 million indicates a 50.7% decline sequentially.
Expenses: Navient's cost-control measures are expected to have boosted operating efficiency and lowered expenses in the second quarter. Last year, the company announced strategic actions, which are expected to have resulted in a further decline in operating expenses in the to-be-reported quarter.
What the Zacks Model Reveals for Navient
NAVI does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Navient is -7.66%.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of NAVI’s Peers
Capital One’s (COF - Free Report) second-quarter 2025 adjusted earnings of $5.48 per share surpassed the Zacks Consensus Estimate of $3.83. The bottom line also compared favorably with $4.06 in the prior quarter.
COF’s results benefited from higher NII and non-interest income. Also, loans and deposits improved in the quarter. However, the increase in expenses and jump in provisions were undermining factors.
Ally Financial’s (ALLY - Free Report) second-quarter 2025 adjusted earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 78 cents. Further, the bottom line reflected a jump of 35.6% from the year-ago quarter.
Results benefited from a rise in net finance revenues and other revenues. Further, lower non-interest expenses and reduced provision provided support. However, a decline in net finance receivables and lower loans and deposits were the undermining factors for ALLY.