Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The brokerage expects second-quarter core EPS of Navient at $0.45 and SLM at $0.11, both in line with the Street's view.
"Overall, we expect both companies will report fairly in-line quarters with credit remaining stable," analyst Mark DeVries wrote in a note.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
For Navient, the FFELP and CFPB issues remain top concerns for investors, while the analyst believes SLM remains on track to hit its full-year earnings and opex targets. DeVries does not expect any material surprises in the quarter for SLM.
"We note that Moody's recently published its final methodology for rating FFELP ABS. The proposed methodology expanded the number of securities that will be under review to be more in-line with Fitch, but we note the assumptions were much less onerous than anticipated, which we view as a positive for NAVI," DeVries said.
For Navient, the analyst projects second-quarter FFELP margin of 0.82 percent, relatively in line with the 0.81 percent in the prior quarter, and private loan margin of 3.55 percent, also in line with the 3.56 percent in the previous quarter.
On the credit side, DeVries estimates private loan net charge-offs of 2.43 percent, relatively in line with 2.42 percent the prior quarter, and expects full-year NCOs of 2.30 percent, which falls at the lower end of management's guidance. Furthermore, the analyst expects provisions of $107 million, higher than the $104 million in the prior quarter.
For SLM, DeVries expects net interest income of $214 million, modestly up from $210 million last quarter and total NIM of 5.58 percent, up 10bps quarter-over-quarter. The analyst predicts private loan origination to seasonally decrease to $415 million, but still be up 2 percent year-over-year and on track to meet the full-year 2016 guidance.
In addition, DeVries estimates private loan delinquencies of 2.12 percent, up 2bps quarter-over-quarter from the prior quarter and expects provisions of $33 million, mostly in line with the first quarter level.
At the time of writing, shares of Navient slipped 0.15 percent to $13.62, while SLM was slightly up on the day at $6.96, a 0.43 percent increase from the open.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com to let us know!Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.