Why Is Navient (NAVI) Up 7.7% Since Last Earnings Report?

Zacks11-30

A month has gone by since the last earnings report for Navient (NAVI). Shares have added about 7.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to...

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Shares have added about 7.7% in that time frame, outperforming the S&P 500.\nWill the recent positive trend continue leading up to...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-navient-navi-7-7-163156710.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Is Navient (NAVI) Up 7.7% Since Last Earnings Report?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Is Navient (NAVI) Up 7.7% Since Last Earnings Report?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-30 00:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/why-navient-navi-7-7-163156710.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A month has gone by since the last earnings report for Navient (NAVI). Shares have added about 7.7% in that time frame, outperforming the S&P 500.\nWill the recent positive trend continue leading up to...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-navient-navi-7-7-163156710.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ALLY","symbol_name":"Ally Financial Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/why-navient-navi-7-7-163156710.html","article_id":"2487598453","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/UPInF06X6fJkTqeimnpZuQ--~B/aD03NDU7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/078b2d95159d12a337f09f2519ff10ba"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487598453","pubTimestamp":1732897916,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"A month has gone by since the last earnings report for Navient . Shares have added about 7.7% 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?Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.Navient Q3 Earnings Beat Estimates, NII & Provisions Decline Y/Y. Navient has reported third-quarter 2024 adjusted earnings per share  of 28 cents, surpassing the Zacks Consensus Estimate of 23 cents. It reported 47 cents in the prior-year quarter.Results were driven by a rise in other income. A decline in provision for loan losses was another positive. However, a decrease in net interest income  and a rise in expenses were headwinds.Navient’s GAAP net loss was $2 million against a net income of $79 million recorded in the prior-year quarter.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ALLY":"Ally Financial Inc.","NAVI":"Navient Corp"},"translate_title":"为什么Navient(NAVI)自上次收益报告以来上涨了7.7%？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NAVI":1,"ALLY":0.9},"content_text":"A month has gone by since the last earnings report for Navient (NAVI). Shares have added about 7.7% in that time frame, outperforming the S&P 500.\nWill the recent positive trend continue leading up to its next earnings release, or is Navient due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. \nNavient Q3 Earnings Beat Estimates, NII & Provisions Decline Y/Y\nNavient has reported third-quarter 2024 adjusted earnings per share (excluding gain from the sale of Xtend Healthcare, provision for loan losses related to lowering the expected recovery rate on defaulted Private Education Loans and restructuring and regulatory-related expenses) of 28 cents, surpassing the Zacks Consensus Estimate of 23 cents. It reported 47 cents in the prior-year quarter.\nResults were driven by a rise in other income. A decline in provision for loan losses was another positive. However, a decrease in net interest income (NII) and a rise in expenses were headwinds.\nNavient’s GAAP net loss was $2 million against a net income of $79 million recorded in the prior-year quarter.\nNavient’s NII Declines, Expenses Rise\nNII declined significantly year over year to $140 million in the third quarter from $280 million. It missed the Zacks Consensus Estimate of $150.04 million.\nTotal other income increased significantly year over year to $276 million from $131 million. The rise stemmed from a gain on the sale of a subsidiary.\nProvision for loan losses was $42 million, down 41.7% from the prior-year quarter.\nTotal expenses increased 42.5% year over year to $342 million.\nNAVI’s Quarterly Performance of Segments\nFederal Education Loans: The segment generated a net income of $27 million, which declined 71.3% year over year.\nAs of Sept. 30, 2024, the company’s net FFELP loans were $31.5 billion, down 4.3% sequentially.\nConsumer Lending: This segment reported a net income of $27 million, which decreased 51.8% from the year-ago quarter.\nThe private education loan delinquency rate greater than 30 days was 5.3% compared with 4.7% in the prior-year quarter.\nAs of Sept. 30, 2024, the company’s private education loans were $16 billion, which decreased 1.4% from the prior quarter. Navient originated $262 million of private education refinance loans in the reported quarter.\nBusiness Processing: Segmental net income of $178 million increased substantially from $9 million in the year-ago quarter.\nNavient’s Liquidity\nTo meet liquidity needs, Navient 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.\nNotably, it had $1.14 billion of total unrestricted cash and liquid investments as of Sept. 30, 2024.\nNavient’s Capital Distribution Activities\nIn the third quarter, the company paid out $17 million in common stock dividends.\nIn the reported quarter, Navient repurchased shares of common stock for $33 million. As of Sept. 30, 2024, there was $176 million of the remaining share-repurchase authority.\n2024 Outlook\nCore EPS is expected to be $2.45-$2.50.\nFFELP segment NIM is expected to be in the mid-70s, while the Consumer  Lending segment NIM is likely to be in the low 300s.\nEBITDA margin is expected in the high teens.\nAdjusted Tangible Equity is anticipated to be above 80%.\nHow Have Estimates Been Moving Since Then?\nIn the past month, investors have witnessed a downward trend in estimates revision.\nThe consensus estimate has shifted -34.55% due to these changes.\nVGM Scores\nCurrently, Navient has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.\nOverall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.\nOutlook\nEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Navient has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.\nPerformance of an Industry Player\nNavient belongs to the Zacks Financial - Consumer Loans industry. Another stock from the same industry, Ally Financial (ALLY), has gained 12.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.\nAlly Financial reported revenues of $2.1 billion in the last reported quarter, representing a year-over-year change of +6.9%. EPS of $0.95 for the same period compares with $0.83 a year ago.\nFor the current quarter, Ally Financial is expected to post earnings of $0.63 per share, indicating a change of +40% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.9% over the last 30 days.\nThe overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ally Financial. Also, the stock has a VGM Score of B.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nNavient Corporation (NAVI) : Free Stock Analysis Report\nAlly Financial Inc. (ALLY) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487598453"}