SLM (NASDAQ:SLM) Announces Earnings Results, Misses Estimates By $0.36 EPS

Key Points

• SLM missed quarterly expectations: The company reported a loss of $0.19 per share versus the $0.17 consensus estimate, while revenue of $375.47 million fell short of analysts’ $453.34 million forecast.
• Shares declined 4.7% to $21.76 following the results, with trading volume significantly above average. The stock’s market capitalization is approximately $4.09 billion.
• SLM declared a quarterly dividend of $0.13 per share, equivalent to an annualized $0.52 dividend and a 2.4% yield. Analysts maintain an overall “Hold” rating, with an average price target of $29.22.

SLM (NASDAQ:SLM - Get Free Report) released its earnings results on Thursday. The credit services provider reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.36), FiscalAI reports. The firm had revenue of $375.47 million during the quarter, compared to analyst estimates of $453.34 million. SLM had a net margin of 26.09% and a return on equity of 33.81%.

SLM Stock Down 4.7%

SLM stock traded down $1.07 during trading on Thursday, reaching $21.76. 7,867,530 shares of the stock were exchanged, compared to its average volume of 3,045,930. The firm's 50 day moving average is $24.75 and its 200 day moving average is $24.02. SLM has a twelve month low of $17.77 and a twelve month high of $31.06. The company has a current ratio of 1.33, a quick ratio of 1.32 and a debt-to-equity ratio of 2.63. The firm has a market cap of $4.09 billion, a P/E ratio of 6.08, a price-to-earnings-growth ratio of 1.52 and a beta of 0.96.

SLM Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, December 4th will be paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, December 4th. SLM's dividend payout ratio is 14.53%.

Analysts Set New Price Targets

SLM has been the subject of several research analyst reports. JPMorgan Chase & Co. lowered their price objective on SLM from $25.00 to $22.00 and set an "underweight" rating for the company in a research report on Monday, October 12th. Morgan Stanley raised their target price on SLM from $27.00 to $28.00 and gave the stock an "equal weight" rating in a research note on Monday, July 20th. Wall Street Zen downgraded SLM from a "hold" rating to a "sell" rating in a report on Saturday, July 25th. Weiss Ratings reissued a "hold (c+)" rating on shares of SLM in a research note on Monday, September 14th. Finally, Wells Fargo & Company set a $28.00 price target on SLM in a research note on Friday, July 24th. Four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, SLM has an average rating of "Hold" and an average price target of $29.22.

SLM Company Profile

SLM Corp., commonly known as Sallie Mae, is a financial services company focused on helping students and families finance higher education. Its primary business is the origination and servicing of private education loans, which can help cover tuition, fees, books, housing and other eligible education-related expenses not fully covered by federal student aid.

The company offers private student loans for undergraduate and graduate education, as well as loans for career-training programs and other education needs.

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