Nelnet (NYSE:NNI) Posts Earnings Results, Misses Expectations By $0.36 EPS

Key Points

• Nelnet missed quarterly earnings expectations: The company reported $1.77 in EPS versus the $2.13 analyst consensus, while revenue of $410.01 million came in below estimates of $419.92 million.
• Shares declined following the results, trading down $3.03 at $131.82. Nelnet has a $4.74 billion market capitalization and trades near the midpoint of its 52-week range.
• Nelnet declared a $0.33 quarterly dividend, equivalent to $1.32 annually and a 1.0% yield. Analyst sentiment remains mixed, with a consensus “Hold” rating and a $140 average price target.

Nelnet (NYSE:NNI - Get Free Report) released its quarterly earnings results on Thursday. The credit services provider reported $1.77 earnings per share for the quarter, missing analysts' consensus estimates of $2.13 by ($0.36), FiscalAI reports. The company had revenue of $410.01 million for the quarter, compared to analyst estimates of $419.92 million. Nelnet had a return on equity of 8.28% and a net margin of 14.35%.

Nelnet Stock Performance

NNI traded down $3.03 during trading hours on Friday, hitting $131.82. 196,672 shares of the stock were exchanged, compared to its average volume of 102,793. The stock has a market cap of $4.74 billion, a price-to-earnings ratio of 15.77 and a beta of 0.78. The stock has a 50-day simple moving average of $132.43 and a 200-day simple moving average of $131.89. The company has a debt-to-equity ratio of 2.14, a current ratio of 24.07 and a quick ratio of 24.07. Nelnet has a 12 month low of $116.62 and a 12 month high of $144.38.

Nelnet Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a dividend of $0.33 per share. The ex-dividend date is Tuesday, September 1st. This represents a $1.32 annualized dividend and a yield of 1.0%. Nelnet's dividend payout ratio (DPR) is 11.50%.

Institutional Trading of Nelnet

Institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC boosted its holdings in shares of Nelnet by 20.9% in the 1st quarter. AQR Capital Management LLC now owns 8,575 shares of the credit services provider's stock valued at $951,000 after buying an additional 1,485 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Nelnet by 2.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,694 shares of the credit services provider's stock worth $1,297,000 after acquiring an additional 299 shares during the last quarter. Jones Financial Companies Lllp lifted its holdings in Nelnet by 1,246.0% in the first quarter. Jones Financial Companies Lllp now owns 3,365 shares of the credit services provider's stock worth $373,000 after acquiring an additional 3,115 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Nelnet by 7.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 58,415 shares of the credit services provider's stock worth $6,480,000 after acquiring an additional 3,923 shares during the last quarter. Finally, Jane Street Group LLC boosted its stake in Nelnet by 583.3% in the first quarter. Jane Street Group LLC now owns 16,023 shares of the credit services provider's stock valued at $1,777,000 after acquiring an additional 13,678 shares during the period. 33.51% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Zacks Research downgraded shares of Nelnet from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 8th. Weiss Ratings reissued a "buy (b)" rating on shares of Nelnet in a research report on Wednesday, July 29th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Nelnet currently has an average rating of "Hold" and an average price target of $140.00.

Nelnet Company Profile

Nelnet, Inc NYSE: NNI is a diversified education services company founded in 1978 and headquartered in Lincoln, Nebraska. Originally established as the National Education Loan Network by Michael S. Dunlap, the company has grown into a prominent provider of student loan servicing and education finance solutions in the United States.

At the core of Nelnet's business is student loan servicing, where it administers and manages federal and private education loans on behalf of borrowers and lending partners.

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