NYSE$NNI

Nelnet Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Nelnet reported record results driven by the ALLO transaction and growth in loan servicing.

Nelnet reported a strong fourth quarter in 2020, with a GAAP net income of $6.10 per share. The quarter was highlighted by the ALLO transaction, which accelerated their growth, and the company was selected to service the private student loans being sold by Wells Fargo.

  • GAAP net income was $6.10 per share.
  • Recognized a gain of $5.10 per share from the ALLO recapitalization.
  • The AGM operating segment reported net interest income of $84.3 million.
  • Selected as servicer for Wells Fargo's private education student loan portfolio.

Headline financials

Total Revenue

$530M

Previous: $288M+83.9%
EPS (adj)

$6.10

Previous: $1.12+444.6%
Total loans serviced

$490B

Previous: $473B+3.6%
Capital Expenditures

$32.6M

Previous: $24.8M+31.4%
Free Cash Flow

$7.17M

Previous: $131M-94.5%
Net Income

$232M

Previous: $41.8M+453.6%
Operating Income

$302M

Previous: $50.9M+494.2%
Gross Profit

$237M

Previous: $264M-10.1%
Cash & Equivalents

$1.11B

Previous: $381M+192.5%
Total Assets

$22.6B

Previous: $23.7B-4.5%
Stock-Based Comp

$11.2M

Previous: $1.83M+511.1%

Revenue & EPS history

Nelnet · Revenue · Quarterly

$530M

Q4 2020+83.9%vs Q4 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Nelnet · $179M total across 2 segments · Q4 2020

  • Loan Servicing & Systems
    $114M+0.8%
  • EdTech & Payments
    $65.1M+2.4%

Forward guidance

This press release contains forward-looking statements within the meaning of federal securities laws. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements.

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 2020

Historical avgQ4 2020

+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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