Navient (NASDAQ:NAVI) Posts Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• Navient reported earnings of $0.21 per share for the quarter, falling short of expectations by $0.06 as analysts anticipated $0.27 EPS.
• The company updated its fiscal year 2025 guidance to a range of $0.950 to $1.050 EPS following a revenue of $156 million, slightly below the expected $156.20 million.
• Navient's stock experienced a decline of 1.9% post-earnings, and currently has an average analyst rating of "Hold" with a consensus target price of $13.56.

Navient (NASDAQ:NAVI - Get Free Report) posted its earnings results on Wednesday. The credit services provider reported $0.21 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.06), Zacks reports. Navient had a return on equity of 4.08% and a net margin of 0.89%. The business had revenue of $156.00 million for the quarter, compared to analysts' expectations of $156.20 million. During the same quarter in the previous year, the firm earned $0.29 earnings per share. Navient updated its FY 2025 guidance to 0.950-1.050 EPS.

Navient Trading Down 1.9%

NAVI stock traded down $0.24 during trading on Friday, hitting $12.70. 144,320 shares of the company traded hands, compared to its average volume of 805,120. The firm has a market capitalization of $1.28 billion, a PE ratio of 41.00 and a beta of 1.40. Navient has a 1 year low of $10.53 and a 1 year high of $16.97. The company has a 50-day moving average of $14.00 and a 200-day moving average of $13.42. The company has a debt-to-equity ratio of 16.52, a quick ratio of 9.88 and a current ratio of 9.94.

Navient Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 20th. Investors of record on Friday, June 6th were issued a dividend of $0.16 per share. The ex-dividend date was Friday, June 6th. This represents a $0.64 annualized dividend and a yield of 5.0%. Navient's dividend payout ratio is currently 206.45%.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Jefferies Financial Group reduced their target price on Navient from $14.00 to $12.00 and set a "hold" rating for the company in a research report on Monday, April 21st. TD Cowen lowered Navient from a "hold" rating to a "strong sell" rating in a research report on Thursday, May 1st. Morgan Stanley reduced their price objective on Navient from $15.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Thursday. Keefe, Bruyette & Woods reduced their price objective on Navient from $16.50 to $15.00 and set a "market perform" rating on the stock in a research report on Thursday. Finally, JPMorgan Chase & Co. increased their price objective on Navient from $12.50 to $15.50 and gave the company a "neutral" rating in a research report on Friday, July 11th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Navient presently has an average rating of "Hold" and a consensus target price of $13.56.

Institutional Investors Weigh In On Navient

An institutional investor recently raised its position in Navient stock. Royal Bank of Canada raised its holdings in shares of Navient Corporation (NASDAQ:NAVI - Free Report) by 11.7% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 98,366 shares of the credit services provider's stock after purchasing an additional 10,296 shares during the period. Royal Bank of Canada owned 0.10% of Navient worth $1,243,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 97.14% of the company's stock.

Navient Company Profile

Navient Corporation provides technology-enabled education finance and business processing solutions for education, health care, and government clients in the United States. It operates through three segments: Federal Education Loans, Consumer Lending, and Business Processing. The company owns Federal Family Education Loan Program (FFELP) loans that are insured or guaranteed by state or not-for-profit agencies; and performs servicing on its portfolios, as well as federal education loans held by other institutions.

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