Education finance company Nelnet (NYSE:NNI) will be announcing earnings results this Thursday after market close. Here’s what you need to know.
Nelnet missed analysts’ revenue expectations last quarter, reporting revenues of $353.2 million, down 7.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ net interest income 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 decline 18.6% year on year, a reversal from the 61% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Sallie Mae posted flat year-on-year revenue, missing analysts’ expectations by 1.8%, and Bread Financial reported revenues up 6.9%, topping estimates by 3.5%. Sallie Mae’s stock price was unchanged after the resultswhile Bread Financial was up 2.4%.
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 6.5% on average over the last month. Nelnet is up 1.3% during the same time and is heading into earnings with an average analyst price target of $135 (compared to the current share price of $136.04).
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