Nelnet Profit Misses Estimates

(RTTNews) - Nelnet Inc (NNI), which deals in the administration and repayment of student loans and education financial services, on Thursday reported first-quarter net earnings of $64.8 million or $1.40 per share. This compares with a profit of $73.8 million or $1.59 per share last year.

Excluding derivative market value and foreign currency adjustments, adjusted earnings for the quarter were $1.37 per share compared with $1.56 per share a year ago.

Analysts polled by Thomson Reuters estimated earnings of $1.51 per share for the quarter. Analysts' estimates typically exclude special items.

The company said earnings were hurt by lower profits from its Student Loan and Guaranty Servicing segment, a drop in investment advisory service fees, and reduced gains from investments.

This was partly offset by an increase in net interest income earned from the company's student loan portfolio as a result of recent loan purchases.

The company's net interest income for the quarter was higher at $102.6 million compared with $98.9 million in the prior year. Other income fell to $117 million from $125.9 million last year.

Analysts estimated revenues of $201.64 million for the quarter.

Operating expenses rose to $115.2 million from $107.4 million last year, while provision for loan losses decreased to $2 million from $2.5 million.

Nelnet declared a second quarter cash dividend of $0.10 per share, and announced a new stock repurchase program of up to five million Class A during the three-year period ending May 24, 2018. The current repurchase program is to expire on May 24.