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.)