Education finance company Nelnet (NYSE:NNI) will be reporting earnings this Thursday afternoon. Here’s what to look for.
Nelnet missed analysts’ revenue expectations last quarter, reporting revenues of $341.5 million, down 8.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is Nelnet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Nelnet’s revenue to grow 16.8% year on year, improving from the 2.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nelnet has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Nelnet’s peers in the consumer finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sallie Mae’s revenues decreased 3.6% year on year, beating analysts’ expectations by 3.9%, and Bread Financial reported revenues up 4.9%, topping estimates by 2.3%. Sallie Mae traded up 1.8% following the results while Bread Financial was down 6.8%.
Read our full analysis of Sallie Mae’s results here and Bread Financial’s results here.
There has been positive sentiment among investors in the consumer finance segment, with share prices up 8% on average over the last month. Nelnet is up 7.1% during the same time and is heading into earnings with an average analyst price target of $135 (compared to the current share price of $140.81).
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