Navient Positioned for Strong Earnings in Upcoming Quarter

Investors seeking a stock with a consistent history of exceeding earnings estimates may consider Navient Corporation (NAVI). This company operates within the Zacks Financial – Consumer Loans industry and demonstrates promising potential to continue this trend in its next quarterly report.

Navient, which specializes in student loan servicing, has notably excelled in beating earnings estimates in recent quarters. Specifically, the firm achieved an average surprise of 23.37% over its last two earnings reports.

Recent Earnings Performance

In the last quarter, Navient reported earnings of $0.25 per share, surpassing the Zacks Consensus Estimate of $0.20 per share, leading to a surprise of 25%. For the previous quarter, analysts expected earnings of $0.23 per share, yet the company posted $0.28 per share, resulting in a surprise of 21.74%.

Price and EPS Surprise

Estimates for Navient have been on the rise, largely driven by its track record of earnings surprises. The stock’s positive Zacks earnings ESP (Expected Surprise Prediction) further indicates a strong possibility for a favorable earnings outcome. This combination, paired with a solid Zacks Rank, enhances the likelihood of another earnings beat.

Our research indicates that stocks with a positive earnings ESP along with a Zacks Rank of #3 (Hold) or better have historically produced positive surprises approximately 70% of the time. To put this into perspective, if you have ten stocks exhibiting this feature, up to seven may beat the consensus estimate.

The Zacks earnings ESP measures the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. This metric serves as an additional gauge for analysts who modify their projections close to an earnings release, potentially reflecting the most accurate insights available.

Currently, Navient boasts an earnings ESP of +56.34%. This indicates growing optimism among analysts regarding the company’s future earnings potential. When combined with a Zacks Rank of #3 (Hold), there are strong indicators that another earnings beat may be forthcoming. The next earnings release is anticipated on April 30, 2025.

It’s essential for investors to note that a negative earnings ESP does not guarantee an earnings miss, although it can reduce the predictive accuracy of this metric.

Many companies do surpass the consensus EPS estimate, but this alone is not always the driving factor for stock movement. Conversely, some stocks may maintain their value even after failing to meet estimates.

Given this context, reviewing a company’s earnings ESP before its quarterly release can enhance your chances of success. Utilize our earnings ESP Filter to identify the best stocks to buy or sell prior to their reports.

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This article was originally published on Zacks Investment Research (zacks.com).

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