NYSE$NNI

Nelnet Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Nelnet reported fourth quarter results, with net income attributable to Nelnet, Inc. shareholders reaching $42.4 million.

Nelnet reported GAAP net income of $42.4 million, or $1.06 per share, for Q4 2019, compared to $21.6 million, or $0.53 per share, for the same period the previous year. Excluding derivative market value adjustments, net income was $44.6 million, or $1.12 per share, compared to $58.8 million, or $1.44 per share in 2018.

  • GAAP net income for Q4 2019 was $42.4 million, or $1.06 per share.
  • Net income, excluding derivative market value adjustments, was $44.6 million, or $1.12 per share.
  • Loan Servicing and Systems revenue was $113.1 million.
  • Education Technology, Services, and Payment Processing revenue increased by 16 percent to $63.6 million.

Headline financials

Total Revenue

$288M

Previous: $230M+25.1%
EPS (adj)

$1.12

Previous: $1.44-22.2%
Total loans serviced

$473B

Previous: $465B+1.8%
Capital Expenditures

$24.8M

No prior period
Free Cash Flow

$131M

No prior period
Net Income

$41.8M

No prior period
Operating Income

$50.9M

No prior period
Gross Profit

$264M

No prior period
Cash & Equivalents

$381M

No prior period
Total Assets

$23.7B

No prior period
Stock-Based Comp

$1.83M

No prior period

Revenue & EPS history

Nelnet · Revenue · Quarterly

$288M

Q4 2019+25.1%vs Q4 2018
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Revenue by segment

Nelnet · $177M total across 2 segments · Q4 2019

  • Loan Servicing & Systems
    $113M+0.3%
  • EdTech & Payments
    $63.6M+16.5%

Forward guidance

The Loan Servicing and Systems segment will continue to incur additional costs in 2020 to meet the increased service and security standards, as well as incur additional costs to be responsive to the Department's procurement. As a result, the company currently expects a significant decrease in this segment's operating margin and net income in 2020 from recent historical results.

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 Q4 2019

Historical avgQ4 2019

+0.9%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.9%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+16.6%

Q3 2016

Best reaction

-11.3%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-13.6%-8.2%
Q4 2025-1.7%+3.5%-3.6%
Q3 2025+2.2%+0.1%+0.5%
Q1 2025+5.9%+10.6%+7.7%
Q4 2024+9.3%+6.7%-0.3%
Q3 2024-9.9%-12.5%-13.1%
Q2 2024+1.1%+2.6%+4.5%
Q1 2024+12.9%+13.9%+4.1%
Q4 2023-3.7%-3.1%+7.3%
Q3 2023-0.8%-3.1%-3.9%
Q2 2023-2.1%-4.1%-7.9%
Q1 2023-1.1%-0.9%+6.8%
Q4 2022-3.0%-2.5%-3.3%
Q3 2022+1.4%+8.2%+6.9%
Q2 2022-0.2%-2.3%-11.3%
Q1 2022-1.7%-0.8%+3.9%
Q4 2021+0.0%+1.6%+5.6%
Q3 2021-0.6%+1.8%+9.7%
Q2 2021+2.8%+2.5%+8.3%
Q1 2021-1.0%+2.9%-0.1%
Q4 2020+1.0%+2.7%+3.6%
Q3 2020+3.2%+13.8%+9.1%
Q2 2020+2.2%+1.8%+5.2%
Q1 2020-1.6%-2.8%+15.2%
Q4 2019-5.5%-10.1%-24.6%
Q3 2019-3.1%-1.9%-3.0%
Q2 2019+7.8%+6.8%+5.7%
Q1 2019+8.9%+6.0%+2.1%
Q4 2018+1.5%+1.2%+2.0%
Q3 2018-8.2%-3.9%-6.6%
Q2 2018-2.9%-3.1%-4.5%
Q1 2018+8.4%+8.9%+16.0%
Q4 2017+6.9%+6.7%+1.2%
Q3 2017-10.4%-10.9%-5.9%
Q2 2017-0.6%-5.3%-0.5%
Q1 2017-5.0%-9.1%-6.9%
Q4 2016-11.3%-8.9%-15.0%
Q3 2016+16.6%+23.7%+36.2%
Q2 2016-11.1%-11.7%-9.5%
Q1 2016-5.9%
Q4 2015+2.4%
Q3 2015-4.6%
Q2 2015+5.0%
Q1 2015-4.3%
Q4 2014-0.6%
Q3 2014-0.9%
Q2 2014+6.6%
Q1 2014-3.1%
Q4 2013+11.8%
Q3 2012+4.9%
Q3 2013+4.9%
Q2 2013+5.5%
Q1 2013+0.9%
Q4 2012+3.9%
Q2 2012+3.9%
Q1 2012-1.7%
Q1 2011-1.7%
Q4 2009+1.9%
Q4 2011+1.9%
Q2 2011+1.9%
Q3 2011+1.6%
Q3 2010+1.6%
Q2 2010+4.0%
Q4 2010+4.0%
Q1 2010+9.1%

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