NASDAQ$SLM

SLM Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong first-quarter results with increased private education loan originations and improved credit performance.

Sallie Mae reported a strong first quarter in 2023, marked by the highest level of loan originations in the company's history. The company's balance sheet and liquidity position are solid, and credit performance is improving.

  • GAAP net income was $119 million, a decrease of 8% year-over-year.
  • Net interest income increased by 8% to $405 million.
  • Private education loan originations rose by 12% to $2.4 billion.
  • The company expects to close a $2 billion loan sale in early May.

Headline financials

Total Revenue

$427M

Previous: $397M+7.5%
EPS (adj)

$0.47

Previous: $0.46+2.2%
Net Interest Margin

5.7%

Previous: 5.3%+7.8%
Private Loan Originations

$2.4B

Previous: $2.2B+9.1%
Free Cash Flow

$119M

Previous: $129M-8.0%
Net Income

$119M

Previous: $129M-8.0%
Operating Income

$212M

Previous: $218M-2.6%
Gross Profit

$427M

Previous: $299M+42.8%
Cash & Equivalents

$3.72B

Previous: $3.26B+13.9%
Total Assets

$29.5B

Previous: $29.1B+1.4%
Stock-Based Comp

$11.5M

Previous: $11.9M-3.2%

Revenue & EPS history

SLM · Revenue · Quarterly

$427M

Q1 2023+7.5%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

For 2023, Sallie Mae expects full-year diluted non-GAAP “Core Earnings” per common share of $2.50 - $2.70, full-year Private Education Loan originations year-over-year growth of 5% - 6%, full-year total loan portfolio net charge-offs of $345 million - $385 million, and full-year non-interest expenses of $610 million - $620 million.

Tailwinds

  • Full-year diluted non-GAAP “Core Earnings” per common share of $2.50 - $2.70.
  • Full-year Private Education Loan originations year-over-year growth of 5% - 6%.
  • Company expects to execute loan sales.
  • Company expects to execute share repurchases.
  • Company projects originations to increase.

Headwinds

  • Full-year total loan portfolio net charge-offs of $345 million - $385 million.
  • Full-year non-interest expenses of $610 million - $620 million.
  • Increases in financing costs.
  • Limits on liquidity.
  • Increases in costs associated with compliance with laws and regulations.

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 2023

Historical avgQ1 2023

+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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