Navient Second Quarter 2024 Earnings: Misses Expectations

Navient (NASDAQ:NAVI) Second Quarter 2024 Results

Key Financial Results

• Revenue: US$233.0m (down 21% from 2Q 2023).
• Net income: US$36.0m (down 46% from 2Q 2023).
• Profit margin: 16% (down from 22% in 2Q 2023). The decrease in margin was driven by lower revenue.
• EPS: US$0.32 (down from US$0.53 in 2Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Navient Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 29%.

Looking ahead, revenue is expected to decline by 29% p.a. on average during the next 3 years, while revenues in the Consumer Finance industry in the US are expected to grow by 12%.

Performance of the American Consumer Finance industry.

The company's shares are up 1.6% from a week ago.

Risk Analysis

You should always think about risks. Case in point, we've spotted 2 warning signs for Navient you should be aware of, and 1 of them makes us a bit uncomfortable.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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