Sallie Mae Misses Q2 Estimates as Net Interest Income Drops 12%, Shares Slide 5.8%
SLM sits 28% above its 52-week low of $17.77 on elevated volume (1.9× avg).
Summary
Sallie Mae's Q2 profit fell 18% to $54.9M, with EPS of $0.29 missing the $0.44 consensus by a wide margin. Net interest income dropped 12% to $332.8M as margin compressed to 4.75% from 5.31% a year ago. The company blamed the decline on expectations but noted a 4.5% rise in private loan originations. Full-year EPS guidance was reaffirmed at $3.10-$3.20, implying a steep second-half ramp. Shares fell 5.8% after hours, reflecting disappointment with the miss and margin pressure.
At the time of this announcement, SLM was trading at $22.78 on NASDAQ in the Finance sector, with a market capitalization of approximately $4.6B. The 52-week trading range was $17.77 to $33.50. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.