Navient Corporation (NASDAQ:NAVI) reported fourth-quarter FY23 adjusted revenues of $193 million, missing the consensus of $201.17 million.
The company reported adjusted earnings of $0.21, missing the street view of $0.75.
Net interest income decreased $27 million to $88 million, primarily due to the impact of increasing interest rates on the different index resets for the segment’s assets and debt, as well as the paydown of the loan portfolio.
The $5 million of provision for loan losses in the current period was primarily a result of the continued extension of the portfolio.
“We are announcing three actions intended to deliver better value to our shareholders: Outsourcing student loan servicing and creating a variable expense model; initiating the exploration of strategic options, including possible divestment, for our business processing division; and streamlining our shared service infrastructure and corporate footprint,” said David Yowan, president and CEO, Navient.
The company registered quarterly operating expenses of $169 million, excluding $30 million of regulatory-related expenses.
Price Action:Â NAVI shares are trading lower by 1.06% to $17.76 on the last check Wednesday.
Image: Shutterstock/ MD Duran
