SLM (NASDAQ:SLM) Releases Quarterly Earnings Results, Misses Expectations By $0.17 EPS

Key Points

• SLM reported quarterly earnings of $0.32 EPS, missing expectations by $0.17 EPS, despite revenue of $403.60 million beating estimates.
• The company's revenue declined by 21.4% compared to the same quarter last year, with a net margin of 15.46%.
• SLM announced a quarterly dividend of $0.13 per share, which reflects an annualized yield of 1.59%.

SLM (NASDAQ:SLM - Get Free Report) released its quarterly earnings data on Thursday. The credit services provider reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.17), Zacks reports. The firm had revenue of $403.60 million for the quarter, compared to analyst estimates of $370.26 million. SLM had a net margin of 15.46% and a return on equity of 22.33%. The company's revenue was down 21.4% compared to the same quarter last year. During the same period last year, the business earned $1.11 EPS. SLM updated its FY 2025 guidance to 3.000-3.100 EPS.

SLM Stock Up 2.3%

SLM traded up $0.73 during midday trading on Friday, reaching $32.74. 4,763,027 shares of the company were exchanged, compared to its average volume of 2,087,752. The company has a debt-to-equity ratio of 2.86, a quick ratio of 1.34 and a current ratio of 1.34. The company's fifty day moving average price is $32.75 and its 200 day moving average price is $30.38. The company has a market cap of $6.87 billion, a price-to-earnings ratio of 16.45, a price-to-earnings-growth ratio of 0.73 and a beta of 1.09. SLM has a one year low of $19.39 and a one year high of $34.97.

SLM Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Thursday, September 4th will be issued a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 1.59%. The ex-dividend date is Thursday, September 4th. SLM's dividend payout ratio is currently 18.71%.

Analyst Ratings Changes

Several research analysts have commented on SLM shares. Jefferies Financial Group lifted their target price on SLM from $33.00 to $40.00 and gave the stock a "buy" rating in a report on Wednesday. Wells Fargo & Company lifted their target price on SLM from $34.00 to $38.00 and gave the stock an "overweight" rating in a report on Wednesday, May 14th. Barclays lifted their target price on SLM from $38.00 to $43.00 and gave the stock an "overweight" rating in a report on Friday. Royal Bank Of Canada reissued an "outperform" rating on shares of SLM in a research note on Monday, July 14th. Finally, Morgan Stanley reissued an "overweight" rating and issued a $40.00 price objective (up from $33.00) on shares of SLM in a research note on Wednesday, May 21st. One investment analyst has rated the stock with a hold rating and nine have issued a buy rating to the company's stock. Based on data from MarketBeat, SLM currently has a consensus rating of "Moderate Buy" and an average price target of $35.00.

Insider Buying and Selling at SLM

In other news, Director Robert S. Strong sold 3,000 shares of the business's stock in a transaction that occurred on Friday, May 2nd. The stock was sold at an average price of $31.15, for a total value of $93,450.00. Following the transaction, the director owned 35,195 shares in the company, valued at $1,096,324.25. The trade was a 7.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.30% of the stock is owned by insiders.

Hedge Funds Weigh In On SLM

Several institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. lifted its position in shares of SLM by 33.4% during the first quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider's stock worth $16,087,000 after acquiring an additional 137,285 shares in the last quarter. NewEdge Advisors LLC increased its holdings in shares of SLM by 6.6% in the first quarter. NewEdge Advisors LLC now owns 21,350 shares of the credit services provider's stock worth $627,000 after purchasing an additional 1,319 shares during the period. Finally, Dynamic Technology Lab Private Ltd bought a new position in shares of SLM in the first quarter worth $263,000. Hedge funds and other institutional investors own 98.94% of the company's stock.

About SLM

SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It is also involved in the provision of retail deposit accounts, including certificates of deposit, money market accounts, and high-yield savings accounts; and interest-bearing omnibus accounts.

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