Student loan servicer Nelnet jumps after quarterly profit beat

Nelnet

28/02/2025 19:14

** Shares of student loan servicing firm Nelnet NNI.N jump as much as 8.1%, last up 7.1% at $119.6

** NNI, on Thursday, posted Q4 profit above Wall Street expectations, after missing estimates in the past two quarters

** TD Cowen views Q4 as positive, due to better-than-expected servicing revenue and net interest income

** NNI is also servicing the $10 billion private education student loan portfolio sold by Discover Financial Services DFS.N last year to buyout giants Carlyle CG.O and KKR KKR.N

** The DFS student loan portfolio helped NNI's private education servicing revenue nearly double to $24.8 million, as the loans were converted to its platform

** NNI stock up 12% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))