Sallie Mae Reports Decline in Profits; Beats Estimates (SLM)

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 DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here