Student-loan firm Navient slides after Q4 profit miss

Navient

26/01/2022 13:34

** Navient Corp  NAVI.O  shares down ~10% at $16.70
premarket after U.S. student loan giant's results miss
expectations on mix of higher expenses and lower revenue
    ** Co late Tues posted https://www.sec.gov/Archives/edgar/data/1593538/000119312522017055/d297291dex992.htm
 Q4 adj EPS of 78 cents, down from 97 cents in yr-ago qtr,
misses Street consensus by 9 cents, per Refinitiv IBES data 
    ** Q4 interest income from federal loans was $359 mln vs
$401 mln in yr-ago qtr, while interest income from private
education loans was $276 mln, down from $329 mln in Q420
    ** NAVI reported $448 mln in operating expenses, up ~67%
yr/yr
    ** On Jan 13, NAVI agreed with 38 states to cancel $1.7 bln
in debt owed by 66,000 borrowers, and make $142.5 mln payment to
the states, to resolve allegations co preyed on customers and
steered many to costly repayment plans  urn:newsml:reuters.com:*:nL1N2TT1P7
    ** NAVI's shares have lost ~13% YTD through close on Tues
    ** Avg rating among 12 analysts covering NAVI is 'buy' and
median PT is $22 - Refinitiv

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))