Sallie Mae (SLM) Reports Q2 Earnings: What Key Metrics Have to Say
Sallie Mae (SLM) reported $386.63 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 6.6%. EPS of $1.10 for the same period compares to $1.29 a year ago.
The reported revenue represents a surprise of +4.45% over the Zacks Consensus Estimate of $370.15 million. With the consensus EPS estimate being $1.14, the EPS surprise was -3.51%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Sallie Mae performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Interest Margin: 5.52% versus 5.54% estimated by four analysts on average.
Net charge-offs to average loans: 0.29% versus the three-analyst average estimate of 1.68%.
Average Balances-Interest earning assets: $28.10 billion compared to the $26.38 billion average estimate based on three analysts.
Net Interest Income: $386.63 million versus the five-analyst average estimate of $368.84 million.
Gains on sales of loans to affiliates, net: $124.75 million compared to the $125 million average estimate based on five analysts.
Other income: $20.51 million versus the five-analyst average estimate of $13.83 million.
Total Non Interest Income: $144.05 million versus $139.17 million estimated by five analysts on average.
View all Key Company Metrics for Sallie Mae here>>>
Shares of Sallie Mae have returned +2.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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