NASDAQ$SLM

SLM Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Sallie Mae reported strong first-quarter results driven by core business execution and improved economic conditions.

Sallie Mae reported a strong first quarter, exceeding expectations with GAAP net income of $640 million and core earnings of $648 million. The results were driven by core business fundamentals, including loan originations, loan performance, loan sales, and expense management. The company also executed on its capital return program through loan sales and share repurchases.

  • GAAP net income was $640 million, up 77% compared to the first quarter of 2020.
  • Core earnings were $648 million, reflecting adjustments to GAAP net income.
  • Private education loan originations totaled $2.1 billion, down 10% due to the pandemic.
  • The company recognized a $399 million gain from the sale of $3.16 billion in private education loans.

Headline financials

Total Revenue

$745M

Previous: $692M+7.6%
EPS (adj)

$1.77

Previous: $0.79+124.1%
Net Interest Margin

4.4%

Previous: 5.1%-13.4%
Return on Common Equity

101.5%

Previous: 67.4%+50.6%
Free Cash Flow

$641M

Previous: $362M+77.0%
Net Income

$641M

Previous: $362M+77.0%
Operating Income

$409M

Previous: $402M+1.5%
Gross Profit

$519M

Previous: $631M-17.8%
Cash & Equivalents

$6.21B

Previous: $7.29B-14.9%
Total Assets

$30.6B

Previous: $31.8B-3.6%
Stock-Based Comp

$11.1M

Previous: $13.6M-18.3%

Revenue & EPS history

SLM · Revenue · Quarterly

$745M

Q1 2021+7.6%vs Q1 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

For 2021, Sallie Mae expects diluted GAAP earnings per common share of $2.95 - $3.15, private education loan originations year-over-year growth of 6% - 7%, total loan portfolio net charge-offs of $260 million - $280 million, and non-interest expenses of $525 million - $535 million.

Tailwinds

  • Full-year diluted GAAP earnings per common share of $2.95 - $3.15.
  • Full-year Private Education Loan originations year-over-year growth of 6% - 7%.
  • The company expects total loan portfolio net charge-offs between $260 million and $280 million.
  • The company anticipates non-interest expenses in the range of $525 million to $535 million.
  • The company has repurchased 109.6 million shares of common stock under its repurchase programs, which represents a 26% reduction in the total number of shares outstanding on Jan. 1, 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.0%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.9%

Avg return

30 days after

46%

33 / 72 earnings

Positive

+33.2%

Q4 2019

Best reaction

-16.6%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%-1.8%-5.5%
Q4 2025+3.3%-1.2%-15.4%
Q3 2025+3.6%+0.9%+4.3%
Q2 2025-8.1%-7.1%-14.7%
Q1 2025-1.4%+2.7%+19.3%
Q3 2024-3.6%-3.0%+17.8%
Q2 2024-2.1%-4.0%-7.9%
Q1 2024+0.0%-1.4%-4.3%
Q4 2023+3.5%+5.1%+2.5%
Q3 2023+1.2%+1.2%+10.6%
Q2 2023-4.5%-1.8%-13.2%
Q1 2023+6.0%+3.5%+11.1%
Q4 2022-15.8%-12.5%-18.9%
Q3 2022-1.8%+1.2%+4.2%
Q2 2022-5.1%-3.1%-9.2%
Q1 2022+1.4%+1.6%+17.0%
Q4 2021+2.0%+6.8%+16.4%
Q3 2021+4.4%+6.5%+4.7%
Q2 2021-4.2%-6.3%-8.3%
Q1 2021-0.6%+1.5%+4.5%
Q4 2020+6.7%+5.5%+20.9%
Q3 2020-0.8%+0.2%+14.0%
Q2 2020-1.8%-2.0%+1.4%
Q1 2020+6.2%+10.4%+8.1%
Q4 2019+33.2%+27.0%+36.5%
Q3 2019-7.6%-5.4%-3.4%
Q2 2019-4.3%-4.1%-14.4%
Q1 2019-3.1%-3.8%-1.5%
Q4 2018+14.4%+15.8%+21.1%
Q3 2018-2.6%-6.0%-4.4%
Q2 2018-5.0%-2.5%-2.5%
Q1 2018+2.3%+0.6%+0.0%
Q4 2017-2.1%-3.9%-1.7%
Q3 2017+1.7%-2.9%-8.2%
Q2 2017-4.3%-3.4%-9.9%
Q1 2017+10.5%+11.0%-4.9%
Q4 2016+3.6%+3.6%+11.6%
Q3 2016-1.8%-0.8%+30.8%
Q2 2016-1.4%-0.6%+3.4%
Q1 2016+2.2%
Q4 2015+11.9%
Q3 2015-1.4%
Q2 2015-5.6%
Q1 2015+4.1%
Q4 2014-6.0%
Q3 2014+1.9%
Q2 2014+3.3%
Q1 2014+4.3%
Q4 2013-10.1%
Q3 2013+2.1%
Q2 2013+4.4%
Q1 2013-5.1%
Q4 2012-3.1%
Q3 2012-1.1%
Q4 2011+1.8%
Q2 2012-6.1%
Q1 2012+0.2%
Q3 2011+0.6%
Q2 2011-16.6%
Q1 2011-2.2%
Q4 2009-4.1%
Q4 2010-4.1%
Q4 2008-4.1%
Q3 2010-2.6%
Q2 2010+3.6%
Q1 2009-5.5%
Q1 2010-0.2%
Q4 2007-1.3%
Q3 2009+3.7%
Q3 2008+3.7%
Q2 2008+4.8%
Q2 2009+4.8%

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