Sallie Mae (SLM) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates
Analysts on Wall Street project that Sallie Mae (SLM) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing an increase of 363.6% year over year. Revenues are projected to reach $379.2 million, declining 0.6% from the same quarter last year.
The current level reflects a downward revision of 12.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Sallie Mae metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Net Interest Margin' will reach 5.3%. The estimate compares to the year-ago value of 5.4%.
The consensus estimate for 'Average Balances-Interest earning assets' stands at $29.67 billion. The estimate compares to the year-ago value of $28.19 billion.
According to the collective judgment of analysts, 'Net Interest Income' should come in at $382.84 million. The estimate is in contrast to the year-ago figure of $381.43 million.
The combined assessment of analysts suggests that 'Other income' will likely reach $22.37 million. Compared to the present estimate, the company reported $14.71 million in the same quarter last year.
View all Key Company Metrics for Sallie Mae here>>>
Shares of Sallie Mae have demonstrated returns of +0.7% over the past month compared to the Zacks S&P 500 composite's +1.6% change. With a Zacks Rank #3 (Hold), SLM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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SLM Corporation (SLM) : Free Stock Analysis Report
