SLM Beats Estimates Yet Again
SLM (NAS: SLM) reported earnings on Jan. 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SLM beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and earnings per share grew significantly.
Gross margins contracted, operating margins shrank, and net margins grew.
SLM booked revenue of $879.0 million. The three analysts polled by S&P Capital IQ expected a top line of $732.7 million. Sales were 12% lower than the prior-year quarter's $856.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.51. The five earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share on the same basis. GAAP EPS of $0.99 for Q4 were 21% higher than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 69.3%, 3,070 basis points worse than the prior-year quarter. Operating margin was 68.7%, 110 basis points worse than the prior-year quarter. Net margin was 64.5%, 1,480 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $804.5 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $3.72 billion. The average EPS estimate is $2.05.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SLM is outperform, with an average price target of $17.60.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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