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Market Overview

Earnings Outlook for Navient

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Navient (NASDAQ:NAVI) releases its next round of earnings this Tuesday, January 26. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Navient earnings of $0.83 per share. Revenue will likely be around $283.90 million, according to the consensus estimate. Navient reported a per-share profit of $0.67 when it published results during the same quarter last year. Sales in that period totaled $294.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 23.88% increase for the company. Revenue would be down 3.44% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.78 0.47 0.60 0.57
EPS Actual 1.03 0.91 0.51 0.67
Revenue Estimate 281.74 M 272.00 M 288.43 M 296.67 M
Revenue Actual 321.00 M 329.00 M 297.00 M 294.00 M

Stock Performance

Shares of Navient were trading at $11.28 as of January 22. Over the last 52-week period, shares are down 26.23%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Navient is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings