Education loan company, SLM Corp(SLM) (Sallie Mae) reported a decline in profit on Thursday, but beat analysts expectations.
The Newark, DE based company reported fourth quarter earnings of $343 million, or 74 cents per share, down 32% from last years earnings of $506 million, or 99 cents per share. Excluding special items, EPS was 55 cents, beating analysts estimate of 53 cents.
The company reported revenue for the quarter at $792 million, beating analysts estimate of $711 million.
Although SLM has seen an increase in demand for educational loans as the price of college rises, the company has suffered as many students are not able to pay back past loans.
Looking ahead, the company expects to see FTY2013 earnings of $2.30 per share, which would miss analysts estimate of $2.32 per share.
SLM shares were down 30 cents, or -1.73% during premarket trading Thursday. The stock has increased 26% in the past year.
The Bottom Line
Shares of SLM Corp (SLM) have a 2.89% dividend yield, based on last night’s closing stock price of $17.30. The stock has technical support in the $15-$16 price area. If the shares can firm up, we see overhead resistance around the $18-$20 price levels.
SLM Corp(SLM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.