The upcoming report from Sallie Mae (SLM) is expected to reveal quarterly earnings of $0.95 per share, indicating an increase of 90% compared to the year-ago period. Analysts forecast revenues of $378.46 million, representing an increase of 4.5% year over year.
The current level reflects a downward revision of 12.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Sallie Mae metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Net Interest Margin' will likely reach 5.2%. The estimate is in contrast to the year-ago figure of 4.9%.
The consensus estimate for 'Net Interest Income' stands at $378.46 million. Compared to the current estimate, the company reported $362.19 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Other income' should arrive at $33.35 million. Compared to the current estimate, the company reported $27.71 million in the same quarter of the previous year.
The consensus among analysts is that 'Total Non-Interest Income' will reach $56.99 million. The estimate is in contrast to the year-ago figure of $27.78 million.
View all Key Company Metrics for Sallie Mae here>>>
Shares of Sallie Mae have experienced no change in the past month compared to the +2% move of the Zacks S&P 500 composite. With a Zacks Rank #5 (Strong Sell), SLM is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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SLM Corporation (SLM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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