Navient (NASDAQ:NAVI) Releases Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Navient (NASDAQ:NAVI) issued its quarterly earnings data on Wednesday. The credit services provider reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.10), Zacks reports. Navient had a net margin of 1.79% and a return on equity of 3.66%. The business had revenue of $308.00 million during the quarter, compared to analyst estimates of $144.92 million. During the same quarter in the prior year, the firm posted ($0.84) earnings per share.

Navient Stock Down 2.8%

NAVI stock opened at $8.82 on Friday. The company has a debt-to-equity ratio of 16.73, a current ratio of 10.53 and a quick ratio of 10.53. The stock has a market capitalization of $827.14 million, a P/E ratio of 9.97 and a beta of 1.17. The business has a 50-day moving average of $9.19 and a 200-day moving average of $8.89. Navient has a fifty-two week low of $7.33 and a fifty-two week high of $13.48.

Navient Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 7.3%. The ex-dividend date was Friday, September 4th. Navient’s payout ratio is -128.00%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on NAVI. Barclays dropped their target price on shares of Navient from $7.00 to $6.00 and set an “underweight” rating on the stock in a report on Thursday. TD Cowen reduced their price target on shares of Navient from $8.50 to $8.00 and set a “sell” rating for the company in a report on Thursday. Zacks Research upgraded shares of Navient from a “hold” rating to a “strong-buy” rating in a report on Monday, October 12th. JPMorgan Chase & Co. increased their price objective on shares of Navient from $8.50 to $9.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Navient in a research report on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $8.00.

Key Headlines Impacting Navient

Here are the key news stories impacting Navient this week:

• Positive Sentiment: Navient reported $308 million in Q3 revenue, above the cited consensus estimate of $144.92 million. A results review also highlighted origination growth and portfolio repositioning as factors supporting performance. Navient Q3 results Q3 deep dive
• Neutral Sentiment: JPMorgan raised its price target to $9 from $8.50 but maintained a neutral rating, implying limited upside from the cited share price. JPMorgan rating
• Negative Sentiment: Q3 EPS was $0.03, missing analyst estimates of $0.13–$0.15 and down from $0.29 a year earlier. The earnings shortfall likely weighed on sentiment despite the reported revenue beat. Q3 earnings report
• Negative Sentiment: TD Cowen cut its target to $8 from $8.50 and assigned a sell rating. Barclays lowered its target to $6 from $7 and maintained an underweight rating, signaling substantial downside concerns. TD Cowen rating Barclays rating

Navient Company Profile

Navient Corp. (NASDAQ:NAVI) is a financial services company that provides education finance and business-processing solutions. The company has historically serviced and managed federal and private student loans, helping borrowers with account administration, repayment processing, customer support and related loan-management services.

Navient’s operations have evolved as the company reduced its role in servicing federally owned student loans. In 2021, it transferred its federal student loan servicing portfolio to Aidvantage, a division of Maximus.