In its upcoming report, Sallie Mae (SLM) is predicted by Wall Street analysts to post quarterly earnings of $0.84 per share, reflecting an increase of 465.2% compared to the same period last year. Revenues are forecasted to be $375.85 million, representing a year-over-year increase of 4.6%.
The consensus EPS estimate for the quarter has been revised 8.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Sallie Mae metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Net Interest Margin' to come in at 5.1%. The estimate is in contrast to the year-ago figure of 5.0%.
The average prediction of analysts places 'Net Interest Income' at $375.85 million. The estimate compares to the year-ago value of $359.40 million.
According to the collective judgment of analysts, 'Other income' should come in at $23.75 million. Compared to the current estimate, the company reported $28.39 million in the same quarter of the previous year.
The consensus estimate for 'Total Non-Interest Income' stands at $168.34 million. The estimate compares to the year-ago value of $24.52 million.
View all Key Company Metrics for Sallie Mae here>>>
Sallie Mae shares have witnessed a change of -4.4% in the past month, in contrast to the Zacks S&P 500 composite's +1.1% move. With a Zacks Rank #4 (Sell), SLM is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SLM Corporation (SLM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
