A month has gone by since the last earnings report for Navient (NAVI Quick QuoteNAVI - Free Report) . Shares have added about 5.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Navient due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Navient Corporation before we dive into how investors and analysts have reacted as of late.

Navient Q2 Earnings Miss on Lower NII & Higher Provisions

Navient reported second-quarter 2025 adjusted earnings per share (EPS) of 21 cents, missing the Zacks Consensus Estimate of 29 cents. It reported earnings of 48 cents in the prior-year quarter. Results excluded regulatory and restructuring-related expenses of 1 cent per share

Results were affected by a decrease in net interest income (NII) and other income along with higher provision for loan losses. However, lower expenses acted as a tailwind.

Navient’s GAAP net income was $14 million compared with $36 million in the prior-year quarter.

NII & Expenses Decline

NII declined 3.7% year over year to $131 million in the second quarter. It missed the Zacks Consensus Estimate by 9.2%.

Total other income decreased 76.1% year over year to $28 million..

Provision for loan losses was $37 million, up from $14 million in the prior-year quarter.

Total expenses decreased 45.4% year over year to $101 million.

Quarterly Performance of Segments

Federal Education Loans: The segment generated a net income of $30 million, which rose 7.1% year over year. 

As of June 30, 2025, the company’s net FFELP loans were $29.6 billion, down 2.1% sequentially.

Consumer Lending: This segment reported a net income of $26 million, which decreased 56.7% from the year-ago quarter.

The private education loan delinquency rate greater than 30 days was 6.4% compared with 5.2% in the prior-year quarter.

As of June 30, 2025, the company’s private education loans were $15.5 billion, which decreased 1% from the prior quarter. Navient originated $443 million of private education refinance loans in the reported quarter.

Business Processing: The company no longer provides Business Processing segment services after the sale of the government services business in February 2025.

Liquidity Profile

To meet liquidity needs, NAVI expects to utilize various sources, including cash and investment portfolio, predictable operating cash flows provided by operating activities, the repayment of principal on unencumbered education loan assets, and distributions from securitization trusts. It may also draw down on the secured FFELP Loan and Private Education Loan facilities, issue term asset-backed securities (ABS), enter additional Private Education Loan and ABS repurchase facilities, or issue additional unsecured debt.

Notably, the company had $712 million of total unrestricted cash and liquid investments as of June 30, 2025.

Capital Distribution Activities

In the second quarter, the company paid $16 million in common stock dividends.

In the reported quarter, Navient repurchased shares of common stock for $35 million. 

2025 Outlook

Core EPS is now expected to be in the range of $0.95–$1.05, compared to the earlier expected range of $1.00–$1.20.

FFELP segment NIM is now expected to be in the range of 55–65 basis points (bps), compared with the previous guidance of 45–60 basis points (bps). This was driven by a stable rate environment and historically low prepayment activity.

The Consumer Lending segment NIM is now projected to be in the range of 255-265 bps, compared to the earlier expected range of 270-280 bps

Management expects the FFELP portfolio balance to total nearly $27 billion at the end of 2025.

Management now expects full-year loan originations to be between $1.8 billion and $2.2 billion, compared to a previous expectation of 30% growth.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -8.74% due to these changes.

VGM Scores

Currently, Navient has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Navient has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Navient belongs to the Zacks Financial - Consumer Loans industry. Another stock from the same industry, Capital One (COF Quick QuoteCOF - Free Report) , has gained 5.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Capital One reported revenues of $12.49 billion in the last reported quarter, representing a year-over-year change of +31.4%. EPS of $5.48 for the same period compares with $3.14 a year ago.

For the current quarter, Capital One is expected to post earnings of $4.21 per share, indicating a change of -6.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Capital One. Also, the stock has a VGM Score of B.