Education finance company Nelnet (NYSE: NNI) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Nelnet beat analysts’ revenue expectations by 36.2% last quarter, reporting revenues of $516.1 million, up 61% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is Nelnet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Nelnet’s revenue to grow 28.4% year on year to $372 million, a reversal from the 9.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.52 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nelnet has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by 16.4% on average.
Looking at Nelnet’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Sallie Mae delivered year-on-year revenue growth of 42.1%, missing analysts’ expectations by 1.5%, and Dave reported revenues up 63%, topping estimates by 13%. Sallie Mae traded up 3.3% following the results.
Read our full analysis of Sallie Mae’s results here and Dave’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the consumer finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.2% on average over the last month. Nelnet’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $130 (compared to the current share price of $130.48).
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