Zacks? analyst wrote, ?We are downgrading our recommendation on Sallie Mae to Neutral from Outperform based on declining interest income. However, the company?s third-quarter 2012 core earnings per share beat the Zacks Consensus Estimate. Results were aided by lower loan loss provision, reduced operating expenses and higher debt repurchase gains. However, declining net interest income remained a headwind. Despite challenges, we believe that its leading position in the student lending market, diversifying efforts, cost containment measures and increasing private student loan originations would help the company navigate well through the current cycle. In addition, federal student loan asset acquisition serves as a positive catalyst. The company?s capital deploying efforts are impressive and we believe that it will succeed in managing the regulatory issues.? SLM has been the subject of a number of other recent research reports. Analysts at Compass Point reiterated a ?buy? rating on shares of SLM in a research note to investors on Wednesday, November 21st.
SLM traded up 0.35% on Tuesday, hitting $17.45. SLM has a 1-year low of $12.85 and a 1-year high of $17.99. The stock?s 50-day moving average is currently $16.94. The company has a market cap of $8.065 billion and a price-to-earnings ratio of 7.95.
SLM last released its earnings data on Wednesday, October 17th. The company reported $0.58 earnings per share for the quarter, beating the analysts? consensus estimate of $0.54 by $0.04. The company?s revenue for the quarter was down 7.5% on a year-over-year basis. SLM has set its FY12 guidance at $2.15 EPS. Analysts expect that SLM will post $2.15 EPS for the current fiscal year.
SLM Corporation, known as Sallie Mae, is engaged in the business of originating, servicing and collecting student loans and/or their parents to finance the cost of their education. To view Zacks? full report, visit www.zacks.com
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