Navient Corporation (NAVI), a provider of student financing, disclosed its first-quarter 2024 earnings results on Wednesday. The company reported a 5.5% decline in its stock value during morning trading, indicating a gap down. The reason behind this drop was the company’s earnings falling short of the average analyst estimate.
Navient’s net interest income decreased in the first quarter, primarily due to the impact of increased interest rates. This led to the company’s earnings per share (EPS) of $0.47, including a $23 million reduction in pretax income, to fall below the consensus estimate of $0.59. The previous quarter’s EPS was $0.21.
President and CEO David Yowan updated investors on the company’s strategic initiatives, launched earlier in the year. He highlighted the nearing completion of an outsourcing agreement that would facilitate the transition of nearly 900 employees to enhance customer support. Additionally, Navient anticipates making decisions regarding options for divesting its business processing division.
Total education loans averaged $54.5 billion at the end of March 2024, showing a decline compared to the previous quarter and a year-over-year decrease. The company’s total expenses decreased from the previous quarter to $187 million, while they increased slightly year-over-year.
Despite the earnings miss, Navient’s non-GAAP EPS remained at $0.47, with revenue reaching $287 million.
