Earnings Preview: SLM

SLM SLM is set to give its latest quarterly earnings report on Wednesday, 2024-10-23. Here's what investors need to know before the announcement.

Analysts estimate that SLM will report an earnings per share (EPS) of $0.06.

SLM bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.27, leading to a 2.71% drop in the share price on the subsequent day.

Here's a look at SLM's past performance and the resulting price change:

Tracking SLM's Stock Performance

Shares of SLM were trading at $22.95 as of October 21. Over the last 52-week period, shares are up 76.64%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on SLM

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding SLM.

With 10 analyst ratings, SLM has a consensus rating of Outperform. The average one-year price target is $26.8, indicating a potential 16.78% upside.

Analyzing Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of and Enova International, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Enova International, with an average 1-year price target of $90.5, indicating a potential 294.34% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for and Enova International, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

SLM ranks higher in Revenue Growth compared to its peers. However, it lags behind in Gross Profit and Return on Equity. Overall, SLM is positioned in the middle among its peers based on the provided metrics.

Unveiling the Story Behind SLM

SLM Corp is the largest student lender in the country. It makes and holds student loans through the guaranteed Federal Family Education Loan Program as well as through private channels. It also engages in debt-management operations, including accounts receivable and collections services, and runs college savings programs.

Financial Milestones: SLM's Journey

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: SLM's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -3.15%. This indicates a decrease in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: SLM's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 48.13% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): SLM's ROE excels beyond industry benchmarks, reaching 12.7%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.87%, the company showcases effective utilization of assets.

Debt Management: SLM's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.66, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for SLM visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.