We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Navient Gears Up for Q4 Earnings: What's in Store for the Stock?
Read MoreHide Full Article
Key Takeaways
NAVI will report fourth-quarter 2025 results on Jan. 28, with EPS expected to be 31 cents, up year over year.
Navient may see revenue pressure as Federal Education Loans weaken, despite resilient consumer loan demand.
Navient's cost-control efforts and leadership restructuring could support profitability amid segment shifts.
Navient Corporation (NAVI - Free Report) is scheduled to report fourth-quarter 2025 results on Jan. 28, before the opening bell. Its quarterly revenues are expected to have declined, while earnings are expected to have increased on a year-over-year basis.
In the third quarter, NAVI’s results benefited from an increase in net interest income (NII) and lower expenses. However, a decrease in other income, along with higher provision for loan losses, acted as a tailwind.
NAVI has an impressive earnings surprise history. Its earnings outpaced estimates in the trailing three quarters and missed once, with the average earnings surprise being 27.82%.
The Zacks Consensus Estimate for 2025 earnings is pegged at 31 cents per share, which has remained unchanged in the past week. The figure indicates a 24% rise from the year-ago reported figure.
The consensus estimate for sales is pegged at $133.3 million, which suggests a marginal decline from the year-ago reported figure.
Factors to Influence Navient’s Results in Q4
Revenues: Per the Fed’s latest data, consumer loan demand remained resilient in the fourth quarter. As such, Navient’s Consumer Lending segment is expected to have recorded a decent rise in revenues. However, the Federal Education Loans segment revenue is likely under pressure due to lower prepayment levels and subdued originations.
The Zacks Consensus Estimate for NII (Core) is pegged at $133.35 million, indicating a sequential decline of 8.6%. The consensus estimate for NII (Federal Education loan) is pegged at $45.3 million, suggesting a 30.3% decline on a sequential basis. The Zacks Consensus Estimate for NII (consumer lending) is pegged at $104.4 million, implying a sequential rise of 6.5%.
The consensus estimate for servicing revenues is pegged at $12.5 million, indicating a 3.4% fall from the prior quarter.
The Zacks Consensus Estimate for total non-interest income of $20.4 million indicates a 11.3% decline sequentially.
Expenses: Navient’s ongoing cost-control initiatives are expected to have supported operating efficiency and reduced expenses in the fourth quarter. The company’s strategic actions under its phased transformation plan, including the sale of its Government Services and Healthcare Services businesses, significant workforce reduction, outsourcing of servicing operations to MOHELA and efforts to streamline its organizational structure, are likely to have contributed to a further decline in operating expenses in the to-be-reported quarter.
What the Zacks Model Reveals for Navient
Our proven model does not conclusively predict an earnings beat for NAVI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Navient is -6.90%.
The company expects core earnings per share (EPS) to be in the range of $0.95–$1.05.
NAVI projects the FFELP segment net interest margin (NIM) to be between 55 and 65 basis points (bps), driven by a stable rate environment and historically low prepayment activity.
The Consumer Lending segment NIM is anticipated to be in the range of 255–265 bps.
Management expects the FFELP portfolio balance to total nearly $27 billion by the end of 2025.
Further, full-year loan originations are expected to be between $1.8 billion and $2.2 billion.
Performance of NAVI’s Peer
Ally Financial’s (ALLY - Free Report) fourth-quarter 2025 adjusted earnings of $1.09 per share surpassed the Zacks Consensus Estimate of $1.01. The bottom line reflected a 39.7% jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and other revenues. Also, lower provisions and a decline in expenses were tailwinds for ALLY. An increase in loan balances further supported the results to some extent.
Citizens Financial Group (CFG - Free Report) reported fourth-quarter 2025 EPS of $1.13, which surpassed the Zacks Consensus Estimate of $1.11 per share. The metric rose 32.9% from the year-ago quarter.
The results of CFG benefited from a rise in non-interest income and NII. The increase in loan and deposit balances was also encouraging. However, a rise in expenses was a major headwind.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Navient Gears Up for Q4 Earnings: What's in Store for the Stock?
Key Takeaways
Navient Corporation (NAVI - Free Report) is scheduled to report fourth-quarter 2025 results on Jan. 28, before the opening bell. Its quarterly revenues are expected to have declined, while earnings are expected to have increased on a year-over-year basis.
In the third quarter, NAVI’s results benefited from an increase in net interest income (NII) and lower expenses. However, a decrease in other income, along with higher provision for loan losses, acted as a tailwind.
NAVI has an impressive earnings surprise history. Its earnings outpaced estimates in the trailing three quarters and missed once, with the average earnings surprise being 27.82%.
Navient Corporation Price and EPS Surprise
Navient Corporation price-eps-surprise | Navient Corporation Quote
The Zacks Consensus Estimate for 2025 earnings is pegged at 31 cents per share, which has remained unchanged in the past week. The figure indicates a 24% rise from the year-ago reported figure.
The consensus estimate for sales is pegged at $133.3 million, which suggests a marginal decline from the year-ago reported figure.
Factors to Influence Navient’s Results in Q4
Revenues: Per the Fed’s latest data, consumer loan demand remained resilient in the fourth quarter. As such, Navient’s Consumer Lending segment is expected to have recorded a decent rise in revenues. However, the Federal Education Loans segment revenue is likely under pressure due to lower prepayment levels and subdued originations.
The Zacks Consensus Estimate for NII (Core) is pegged at $133.35 million, indicating a sequential decline of 8.6%. The consensus estimate for NII (Federal Education loan) is pegged at $45.3 million, suggesting a 30.3% decline on a sequential basis. The Zacks Consensus Estimate for NII (consumer lending) is pegged at $104.4 million, implying a sequential rise of 6.5%.
The consensus estimate for servicing revenues is pegged at $12.5 million, indicating a 3.4% fall from the prior quarter.
The Zacks Consensus Estimate for total non-interest income of $20.4 million indicates a 11.3% decline sequentially.
Expenses: Navient’s ongoing cost-control initiatives are expected to have supported operating efficiency and reduced expenses in the fourth quarter. The company’s strategic actions under its phased transformation plan, including the sale of its Government Services and Healthcare Services businesses, significant workforce reduction, outsourcing of servicing operations to MOHELA and efforts to streamline its organizational structure, are likely to have contributed to a further decline in operating expenses in the to-be-reported quarter.
What the Zacks Model Reveals for Navient
Our proven model does not conclusively predict an earnings beat for NAVI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Navient is -6.90%.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
NAVI’s 2025 Outlook
The company expects core earnings per share (EPS) to be in the range of $0.95–$1.05.
NAVI projects the FFELP segment net interest margin (NIM) to be between 55 and 65 basis points (bps), driven by a stable rate environment and historically low prepayment activity.
The Consumer Lending segment NIM is anticipated to be in the range of 255–265 bps.
Management expects the FFELP portfolio balance to total nearly $27 billion by the end of 2025.
Further, full-year loan originations are expected to be between $1.8 billion and $2.2 billion.
Performance of NAVI’s Peer
Ally Financial’s (ALLY - Free Report) fourth-quarter 2025 adjusted earnings of $1.09 per share surpassed the Zacks Consensus Estimate of $1.01. The bottom line reflected a 39.7% jump from the year-ago quarter.
Results primarily benefited from a rise in net finance revenues and other revenues. Also, lower provisions and a decline in expenses were tailwinds for ALLY. An increase in loan balances further supported the results to some extent.
Citizens Financial Group (CFG - Free Report) reported fourth-quarter 2025 EPS of $1.13, which surpassed the Zacks Consensus Estimate of $1.11 per share. The metric rose 32.9% from the year-ago quarter.
The results of CFG benefited from a rise in non-interest income and NII. The increase in loan and deposit balances was also encouraging. However, a rise in expenses was a major headwind.