Nelnet (NNI) Tops Q1 EPS by 65c

Nelnet (NYSE: NNI) reported Q1 EPS of $2.44, $0.65 better than the analyst estimate of $1.79.

GAAP net income of $123.6 million, or $3.20 per share, for the first quarter of 2021, compared with a GAAP net loss of $40.5 million, or $1.01 per share, for the same period a year ago.

GAAP net income increased for the three months ended March 31, 2021 compared to the same period in 2020 as a result of:

• An increase in net interest income on the company's loan portfolio;
• The recognition of a negative provision for loan losses as a result of improved economic conditions;
• An increase in net income contribution from the company's Loan Servicing and Systems and Education Technology, Services, and Payment Processing operating segments;
• The recognition of certain expenses in 2020 because of the pandemic; and
• A net gain related to the adjustments for changes in fair values of derivative instruments that do not qualify for hedge accounting in 2021, as compared to a loss in 2020.

Net income, excluding derivative market value adjustments1, was $94.1 million, or $2.44 per share, for the first quarter of 2021, compared with a net loss of $24.9 million, or $0.62 per share, for the same period in 2020.

The operating results during the first quarter of 2021 were also impacted by the recognition of a $22.2 million (or $16.9 million after tax, or $0.44 per share) non-cash loss related to the company's remaining voting membership interests investment in ALLO Communications LLC.

"We are excited by the results from the first quarter and the strong start to 2021 for our core businesses and student loan portfolio," said Jeff Noordhoek, Chief Executive Officer of Nelnet. "Building on this momentum by serving our customers with exceptional experiences and pursuing opportunities for revenue diversification is our priority."

For earnings history and earnings-related data on Nelnet (NNI) click here.

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