Shares of Nelnet Inc. plummeted over 9% on Thursday after the consumer lending company reported a significant earnings miss for the third quarter of 2024. The company's adjusted earnings per share (EPS) of $0.34 fell well short of analysts' expectations of $1.36 and the year-ago quarter's EPS of $1.15, sending the stock sharply lower.
Despite the earnings disappointment, Nelnet's revenue for the quarter rose 42.5% year-over-year to $469.44 million, exceeding analysts' estimates of $340.16 million. However, the strong top-line growth failed to translate into profit, with the company reporting a net income of just $2.39 million for the quarter.
Analysts had been anticipating a solid performance from Nelnet, with the consensus recommendation on the stock being a "hold" rating. However, the significant earnings miss has raised concerns about the company's profitability and future prospects. The stock's sharp decline on Thursday erased a portion of its gains for the year, with Nelnet shares still up 39.1% year-to-date.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.