SLM Earnings Prediction
The chart below shows how SLM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SLM sees a -4.16% change in stock price 10 days leading up to the earnings, and a -1.70% change 10 days following the report. On the earnings day itself, the stock moves by +0.01%. This data can give you a slight idea of what to expect for the next quarter's release.
SLM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
362.26M
-14.18%
1.89%
Gross Margin
--
--
--
Operating Margin
36.48%
-31.65%
-317.79%
Net Margin
30.79%
-22.83%
-342.44%
EPS
0.50
-30.56%
-317.39%
No Data Available
SLM Earnings Analysis
SLM Corp Corporation (SLM.O) Earnings Conference Call
Positive
Private Education Loan Growth: Private education loan originations for Q4 2024 were $982 million, a 17% increase compared to the prior year quarter, and full year originations reached $7 billion, exceeding guidance by 1% to 2%.
Earnings Per Share Growth: GAAP diluted EPS for Q4 was $0.50, and for the full year, it was $2.68, reflecting an 11.2% increase year over year from $2.41 in 2023.
Improved Borrower Credit Quality: The average FICO score at approval for loans increased from 748 in 2023 to 752 in 2024, indicating improved credit quality among borrowers.
Improved Credit Performance: Net charge-offs for the full year 2024 were $332 million, or 2.2% of average loans in repayment, down from $374 million, or 2.4%, in 2023, demonstrating improved credit performance.
Cost Management Success: Non-interest expenses for the full year were $642 million, a decrease from $685 million in 2023, reflecting effective cost management despite higher originations.
Negative
Earnings Pressure Despite Growth: GAAP diluted EPS for the full year was $2.68, which is $0.02 below the revised guidance range for 2024, indicating pressure on earnings despite growth in originations.
Net Interest Margin Decline: Net interest margin (NIM) for Q4 was 4.92%, lower than both the previous quarter and the year-ago quarter, reflecting ongoing compression due to funding rate adjustments.
Credit Loss Provision Analysis: The total provision for credit losses was $108 million in Q4, necessitated by higher originations and commitment volumes, indicating potential future credit risk despite a decrease from the previous quarter.
Private Education Loan Delinquency: Private education loans delinquent 30 days or more increased to 3.7% as of December 31, 2024, up from 3.6% in Q3, suggesting a slight deterioration in loan performance.
Private Education Loan Charge-Offs: Full year net charge-offs for private education loans were $332 million, or 2.2% of average loans in repayment, which, while improved from 2023, still reflects significant credit losses.
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SLM Earning Call Sentiment
Earnings call transcript: SLM Corp Q4 2024 earnings miss forecasts
SLM.O
-2.82%Positive
The earnings call summary reveals strong financial performance, with increased loan originations and EPS growth, alongside effective cost management. The share repurchase program and dividend increase signal confidence in financial health. Despite some NIM compression and competitive pressures, the guidance remains optimistic. The Q&A section shows management's cautious yet positive stance, with no major red flags. Given the company's market cap, these factors are likely to result in a positive stock price movement of 2% to 8% in the next two weeks.