- SLM’s Core Earnings Per Share (EPS) for the second quarter significantly missed estimates, reported at 32 cents compared to $1.11 in the same quarter last year, falling short of the estimated 49 cents.
- The company’s net interest margin slightly declined to 5.31% from 5.36% year-over-year, but surpassed the estimated margin of 5.2%.
- Net interest income showed a modest increase of 1.2% from the previous year, reaching $376.8 million, although it did not meet the projected $378.4 million.
- There was a substantial rise in the provision for credit losses, spiking to $148.7 million from just $17 million the previous year, greatly exceeding the estimated provision of $101 million.
- Income tax expenses amounted to $16.4 million, marking a significant 81% decrease compared to the previous year and were well below the estimated $34.8 million.
- Analysts’ ratings for SLM include 10 buy recommendations, 1 hold, and no sell recommendations.
A look at Slm Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
SLM Corporation, also known as Sallie Mae, has a generally positive long-term outlook based on the Smartkarma Smart Scores analysis. With above-average scores in Growth and Momentum, the company appears to be positioned well for future expansion and market performance. Additionally, its moderate scores in Value, Dividend, and Resilience indicate a stable financial standing and potential for consistent returns.
SLM Corporation, operating in the education funding sector, has diversified services that include originating and servicing student loans as well as offering debt management solutions. With a balanced mix of scores across different factors, the company seems primed for sustainable growth and resilience in the evolving market landscape, making it an intriguing investment prospect for those eyeing the education finance industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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