Jan. 29 at 11:38 AM
$NAVI Navient reports Q4 core EPS (24c), consensus 22c
GAAP and Core Earnings results included a net reduction to pre-tax income of
$68M, or 49c diluted loss per share, comprised of: A loss of
$28M resulting from the classification of our government services business as held for sale.
$32M of Private Education Loan provision for loan losses in connection with a general reserve build and lowering the expected recovery rate on defaulted loans.
$8M of regulatory-related and restructuring expenses. "A year ago, we announced three ambitious strategic actions-outsourcing servicing, divesting our business processing businesses, a non-strategic asset, and a more cost efficient and streamlined structure," said David Yowan, president and CEO, Navient.
"We are pleased to say that we achieved our 2024 objectives against an aggressive timeline. These actions provide clear line of sight to our expense reduction targets, deliver value and position us for the future. We accomplished these steps while at the same time achieved strong loan origination growth, with full year 2024 refi originations 60% higher than last year."
