Market Overview

SLM Earnings Preview

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On Wednesday, January 27, SLM (NASDAQ:SLM) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, 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

SLM earnings will be near $0.35 per share on sales of $372.53 million, according to analysts. SLM reported a profit of $0.33 per share when it published results during the same quarter last year. Sales in that period totaled $419.10 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.

If the company were to match the consensus estimate when it reports Wednesday, EPS would be up 6.06%. Sales would be down 11.11% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.08 0.11 0.88 0.30
EPS Actual 0.47 -0.22 0.79 0.33
Revenue Estimate 363.06 M 345.86 M 393.02 M 413.54 M
Revenue Actual 365.00 M 348.77 M 400.12 M 419.10 M

Stock Performance

Over the last 52-week period, shares are up 17.63%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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

 

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Posted-In: BZI-EPEarnings