Latest News

Dow Jones Newswires: Navient stock falls after student-loan company swings to loss

0

Shares of Navient Corp. fell more than 9% in after-hours trading Tuesday, after the student-loan servicer swung to a fourth-quarter loss as higher expenses combined with lower revenue.

Navient NAVI, +0.65% had a loss of $11 million for the quarter, down from a profit of $186 million in the same period last year. Analysts polled by FactSet expected earnings of $137 million.

Per-share loss in the fourth quarter was 7 cents. On an adjusted basis, the Wilmington, Del.-based company posted adjusted per-share earnings of 78 cents. Analysts polled by FactSet expected adjusted per-share earnings of 87 cents.

Net interest income was $314 million, compared with $343 million a year earlier. Total other income was $165 million, compared with $168 million a year earlier.

Interest income from federal loans in the quarter ended Dec. 31 was $359 million, down from $401 million in the same period last year. The company said the delinquency rate for these loans increased to 10.6% from 9.2% and are below pre-pandemic levels.

Interest income generated from private education loans in the fourth quarter was $276 million compared to $329 million in the fourth quarter of 2020.

Navient reported $448 million in operating expenses for the quarter, up from $269 million in the same period last year. Analysts polled by FactSet expected $236 million in operating expenses.

Earlier this month, Navient agreed with 40 state attorneys general to cancel the debt of 66,000 borrowers totaling $1.7 billion and make a one-time payment of $145 million to the states. The company said in a regulatory filing that the expense to cancel the loans was roughly $50 million. It also said it would book a $170 million regulatory expense in the fourth quarter.

Through Tuesday’s close, shares of Navient are down nearly 13% so far this year.

Write to Denny Jacob at denny.jacob@wsj.com

Earnings Results: Texas Instruments placing more ‘strategic emphasis’ on industrial, auto chips after earnings beat

Previous article

Crypto: Bitcoin’s dead-cat bounce? Here are the signs that may indicate price bottoms, analysts say

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News