NAVIENT CORPORATION Reports Q2 Financial Results for 2023 Year-End
August 3, 2023
🌥️Earnings Overview
NAVIENT CORPORATION ($NASDAQ:NAVI) reported their second quarter financial results for the fiscal year ending July 26 2023 on June 30 2023. Revenue totaled USD 307.0 million, a 32.5% decrease year over year. Net income decreased 63.3% to USD 66.0 million compared to the same period in the previous year.
Stock Price
This marks a decrease in profitability for the company, likely due to the recent market conditions. Despite the decrease in profitability and revenue, NAVIENT CORPORATION is still optimistic about their future performance. The company noted that they remain focused on investing in services and technology to strengthen their competitive edge in the marketplace.
Additionally, NAVIENT CORPORATION announced that they are continuing to work with their customers to provide them with options to manage their debt and support their financial goals. NAVIENT CORPORATION remains committed to investing in services and technology to continue providing customers with options to manage their debt and meet their financial goals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Navient Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 1.35k | 387 | 32.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Navient Corporation. More…
| Operations | Investing | Financing |
| 559 | 10.59k | -9.66k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Navient Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 65.6k | 62.67k | 23.07 |
Key Ratios Snapshot
Some of the financial key ratios for Navient Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.2% | – | – |
| FCF Margin | ROE | ROA |
| 41.4% | 10.4% | 0.5% |
Analysis
GoodWhale has conducted an extensive analysis of NAVIENT CORPORATION‘s fundamentals. Based on the Star Chart classification of ‘cow’, we believe this company is a great pick for investors looking for consistent and sustainable dividends. NAVIENT CORPORATION is strong in dividend payouts, but weak in asset and growth, as well as profitability. However, with an intermediate health score of 5/10 considering its cashflows and debt, NAVIENT CORPORATION may still be able to sustain future operations in times of crisis. Therefore, NAVIENT CORPORATION may be a great option for investors who are looking for steady and regular income from dividends. More…
Peers
It is a for-profit company and one of the four largest providers of student loans in the United States. The other three companies are SLM Corp, Nelnet Inc, and Capital Trade Links Ltd.
– SLM Corp ($NASDAQ:SLM)
SLM Corp is a financial services company that specializes in student loan management and servicing. The company has a market cap of $3.88 billion as of 2022. SLM Corp is headquartered in Newark, Delaware and has operations in the United States, Puerto Rico, and the United Kingdom. The company services over $300 billion in student loans for over 10 million borrowers.
– Nelnet Inc ($NYSE:NNI)
Nelnet is a publicly traded student loan servicing company headquartered in Lincoln, Nebraska. Nelnet serviced $247 billion in student loans as of December 31, 2019. It is the second largest student loan servicer in the United States behind Navient. The company also provides Tuition Payment Plans and Guaranteed Asset Protection insurance.
– Capital Trade Links Ltd ($BSE:538476)
As of 2022, Capital Trade Links Ltd has a market cap of 833.6M and a ROE of 4.14%. The company is engaged in the business of providing trade financing and support services to clients in the international trade market. It offers a range of services including trade financing, export financing, import financing, and risk management. The company has a strong focus on providing quality services to its clients and has a reputation for being a reliable and trustworthy partner in the international trade market.
Summary
Investors may want to take a closer look at NAVIENT CORPORATION following their second quarter financial results announcement for the year ending July 26 2023. Total revenue was reported as USD 307.0 million, a decrease of 32.5%, while net income was USD 66.0 million, a decrease of 63.3%. This significant drop in quarterly results caused the stock price to move down the same day, suggesting that NAVIENT CORPORATION’s earnings may be in trouble. Investors should review the company’s financials and determine their own risk tolerance before making any investment decisions.
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