From Nasdaq:

Navient Corporation reported lower-than-expected fourth-quarter 2023 earnings. Results were impacted by decreased total other income and core net interest income. For 2023, earnings were also lower than the prior year. Expenses rose, impacting the bottom line. Navient plans to outsource student loan servicing and explore strategic options for its business processing division to reduce expenses.

In the fourth quarter, Navient’s core NII declined by 16.8% and total other income decreased by 43.1%. The company’s liquidity needs will be met through various sources, including cash, operating cash flows, and debt. They also plan to reduce expenses, simplify operations, and reshaping their corporate footprint as part of a strategic initiative.

Despite lower earnings, Navient’s diverse business segments and strategic actions are expected to support revenue growth. However, lower fee income and increased expenses are concerns. Navient currently holds a Zacks Rank #1 (Strong Buy) and its peers, Ally Financial and Sallie Mae, also reported their earnings results for the fourth quarter of 2023.



Read more: Navient (NAVI) Misses on Q4 Earnings, Plans Strategic Actions