By Owen Tucker-Smith
Navient swung to a profit in the fourth quarter as operating expenses fell.
The financial-services company Wednesday reported net income of $24 million, or 22 cents a share, compared with a loss of $28 million, or 25 cents a share, a year earlier.
The Herndon, Va., company said operating expenses fell $53 million from a year earlier, with $27 million of that coming from a drop in regulatory expenses. The year-earlier period included $28 million of regulatory expense connected to a settlement with the Consumer Financial Protection Bureau.
After stripping out non-core items, the company posted a loss of 24 cents a share, compared with a profit of 21 cents a share. Analysts surveyed by FactSet expected a profit of 22 cents a share.
The company reported net interest income of $135 million, down from $160 million a year ago. Analysts expected $150.5 million.
The company said net interest income was lower because the company had paid down its FFELT and Private Education Loan portfolios.
In December, Gallant Capital Partners agreed to acquire Navient's government-services business.
A year ago, Chief Executive David Yowan outlined plans to deliver stronger shareholder value by outsourcing the company's student-loan servicing and exploring divestment in the business processing division. On Wednesday, Yowan said that the company had accomplished those steps.
"These actions provide clear line of sight to our expense reduction targets, deliver value and position us for the future," Yowan said.
Shares of Navient rose 2% to $15.05 in premarket trading.
Write to Owen Tucker-Smith at owen.tucker-smith@wsj.com
(END) Dow Jones Newswires
January 29, 2025 07:25 ET (12:25 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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