Nelnet Q2 net income jumps to $181.5 mln on ALLO Holdings gain

Reuters
08/07
Nelnet <a href="https://laohu8.com/S/QTWO">Q2</a> net income jumps to $181.5 mln on ALLO Holdings gain

Overview

  • Nelnet Q2 GAAP net income rises to $181.5 mln, driven by ALLO Holdings gain

  • Asset Generation segment sees increased net interest income despite loan balance decline

  • Loan Servicing revenue up due to higher private education loan volumes

Outlook

  • Company focuses on loan servicing, consumer lending, payments, and technology investment

  • Nelnet continues to invest in education technology services

  • Company emphasizes strategic cost management and technology efficiencies

Result Drivers

  • ALLO REDEMPTION - Gain of $175 mln from partial redemption of ALLO investment boosted Q2 results

  • LOAN SPREAD - Increased loan spread drove higher net interest income in Asset Generation segment

  • LOAN SERVICING VOLUME - Revenue growth in Loan Servicing segment due to higher private education loan servicing volumes

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Net Income

$181.5 mln

Q2 Net Interest Income

$79.44 mln

Q2 Loan Loss Provision

$17.93 mln

Q2 Operating Expenses

$219.29 mln

Q2 Pretax Profit

$237.36 mln

Analyst Coverage

  • The one available analyst rating on the shares is "hold"

  • The average consensus recommendation for the consumer lending peer group is "buy."

  • Wall Street's median 12-month price target for Nelnet Inc is $130.00, about 4% above its August 5 closing price of $124.78

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPn29wsQja

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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