NYSE$NNI

Nelnet Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported GAAP net income of $30.8 million for the fourth quarter of 2022.

Nelnet reported GAAP net income of $30.8 million, or $0.83 per share, for Q4 2022, compared to $132.7 million, or $3.46 per share, for the same period a year ago. Net income, excluding derivative market value adjustments, was $36.4 million, or $0.98 per share, compared to $95.9 million, or $2.50 per share, for the same period in 2021.

  • Core businesses, including servicing, payments and education technology, and financial services performed well in 2022.
  • Expect quarterly earnings to be choppy as FFEL Program loans run off and other investments increase.
  • A tremendous foundation was laid for long-term value creation in 2022.
  • As of December 31, 2022, the company was servicing $587.5 billion in government-owned, FFEL Program, private education, and consumer loans for 17.6 million borrowers.

Headline financials

Total Revenue

$337M

Previous: $394M-14.6%
EPS (adj)

$0.98

Previous: $2.50-60.8%
Total loans serviced

$588B

Previous: $529B+11.1%
Capital Expenditures

$15M

Previous: $16.4M-8.3%
Free Cash Flow

$12.2M

Previous: $139M-91.2%
Net Income

$28M

Previous: $129M-78.3%
Operating Income

$33.4M

Previous: $168M-80.1%
Gross Profit

$292M

Previous: $324M-10.0%
Cash & Equivalents

$2.23B

Previous: $1.71B+30.1%
Total Assets

$19.4B

Previous: $21.7B-10.6%
Stock-Based Comp

$4.3M

Previous: $2.85M+51.1%

Revenue & EPS history

Nelnet · Revenue · Quarterly

$337M

Q4 2022-14.6%vs Q4 2021
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Nelnet · $238M total across 2 segments · Q4 2022

  • Loan Servicing & Systems
    $140M-6.9%
  • EdTech & Payments
    $98.3M+21.5%

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 2022

Historical avgQ4 2022

+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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