Student lender SLM posts Q3 net loss; annual EPS outlook lowered
Student lender SLM posts Q3 net loss; annual EPS outlook lowered
Overview
US private student lender's Q3 Private Education Loan originations grew 15% yr/yr, marking a record quarter
Company posted GAAP net loss per share of $0.19, mainly due to higher provisions and expenses
Company repurchased 5.1 mln shares for $132.2 mln during Q3
Outlook
Company lowers 2026 diluted EPS guidance to $1.95-$2.05 from $3.10-$3.20
Company maintains 2026 Private Education Loan originations growth forecast at 12%-14%
Company raises 2026 net charge-off guidance to $400-$420 mln from $365-$385 mln
Result Drivers
ORIGINATIONS GROWTH - Co said record Private Education Loan originations, especially graduate loans after PLUS reform, drove higher activity
HIGHER PROVISIONS AND EXPENSES - Net loss attributed to increased provisions and expenses tied to elevated loan origination volumes
CHARGE-OFFS INCREASE - Higher net charge-offs driven by issues with third-party debt resolution practices and changes to recovery strategies
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Loss Per Share |
| $0.19 |
|
Q3 Net Interest Income |
| $339 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for SLM Corp is $29.00, about 27% above its October 21 closing price of $22.83
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Oct 20 - Synchrony Financial's Q3 net earnings fall 17%
Oct 22 - Enova Q3 adjusted EPS beats estimates on healthy loan demand, stable credit
Oct 21 - Pressure on lower-income US households raises delinquency risks, Morningstar DBRS says
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)