In its upcoming report, Sallie Mae (SLM) is predicted by Wall Street analysts to post quarterly earnings of $1.14 per share, reflecting a decline of 18.6% compared to the same period last year. Revenues are forecasted to be $366.72 million, representing a year-over-year decrease of 2.2%.
The current level reflects a downward revision of 40.1% 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.
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 indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Sallie Mae metrics that are commonly tracked and forecasted by Wall Street analysts.
Based on the collective assessment of analysts, 'Net Interest Margin' should arrive at 5.2%. Compared to the current estimate, the company reported 5.3% in the same quarter of the previous year.
Analysts' assessment points toward 'Net Interest Income' reaching $369.01 million. Compared to the present estimate, the company reported $374.97 million in the same quarter last year.
It is projected by analysts that the 'Gains (losses) on sales of loans, net' will reach $109.19 million. The estimate is in contrast to the year-ago figure of $187.74 million.
Analysts expect 'Other income' to come in at $38.11 million. Compared to the current estimate, the company reported $28.69 million in the same quarter of the previous year.
The consensus estimate for 'Total Non-Interest Income' stands at $154.80 million. Compared to the present estimate, the company reported $206.04 million in the same quarter last year.
View all Key Company Metrics for Sallie Mae here>>>Over the past month, shares of Sallie Mae have returned +12.9% versus the Zacks S&P 500 composite's +8.6% change. Currently, SLM carries a Zacks Rank #3 (Hold), suggesting that its performance may align with 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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This article originally published on Zacks Investment Research (zacks.com).