Student loan provider Sallie Mae (NASDAQ: SLM) will be announcing earnings results this Thursday after market close. Here’s what investors should know.
Sallie Mae met analysts’ revenue expectations last quarter, reporting revenues of $403.6 million, down 21.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.
Is Sallie Mae a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Sallie Mae’s revenue to grow 44.3% year on year to $554.2 million, a reversal from the 6.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 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. Sallie Mae has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Sallie Mae’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Capital One delivered year-on-year revenue growth of 53.4%, beating analysts’ expectations by 2.2%, and Synchrony Financial reported flat revenue, topping estimates by 0.9%. Synchrony Financial traded down 3.5% following the results.
Read our full analysis of Capital One’s results here and Synchrony Financial’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 4.2% on average over the last month. Sallie Mae is down 6.4% during the same time and is heading into earnings with an average analyst price target of $35.18 (compared to the current share price of $26.72).
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