Nelnet Stock Price, News & Analysis

Nelnet (NYSE: NNI) announced on April 25, 2023, that its Nelnet Diversified Services division has secured a 5-year federal contract from the U.S. Department of Education to provide Unified Servicing and Data Solutions (USDS).

This contract aims to enhance student loan servicing for over 37 million borrowers under federally managed loans, with an option to extend up to 10 years. The transition to this new contract is expected to start in 2024, while current servicing contracts will continue until December 2024 to ensure a seamless transition.

CEO Jeff Noordhoek emphasized the alignment between the Department's modernization goals and Nelnet's investment strategies, highlighting the company's commitment to improving customer experiences for federal student aid recipients.

Nelnet (NYSE: NNI) will announce its earnings for the first quarter ended March 31, 2023, after the close of the New York Stock Exchange on May 8, 2023. This announcement is expected to provide key financial metrics which may impact investor sentiment. Following the earnings release, detailed information will be available on the company's investor relations website. Investors and analysts will be looking closely at the results for insights into the company's financial health and future outlook.

Nelnet (NYSE: NNI) announced significant staffing reductions due to lower pricing and decreased servicing volume for federal contracts. On March 22, 2023, the company received a contract modification from the Department of Education that cut the price earned per borrower. Furthermore, Nelnet will lose approximately 1 million borrowers to another servicer, affecting its Diversified Services division, which will see around 550 positions eliminated. The company aims to consolidate servicing platforms and enhance efficiencies while remaining committed to supporting education.

Nelnet reported a GAAP net income of $30.8 million ($0.83 per share) for Q4 2022, a significant decline from $132.7 million ($3.46 per share) year-over-year. Excluding derivative market adjustments, net income was $36.4 million ($0.98 per share), down from $95.9 million ($2.50 per share) in 2021. Despite strong performance in core businesses, the company anticipates earnings volatility due to loan runoff. The Asset Generation and Management segment experienced a $58.5 million net interest income, down from $70.1 million, and a provision for loan losses of $27.4 million. Total 2022 GAAP net income rose to $407.3 million, or $10.83 per share.

Nelnet, Inc. (NYSE: NNI) declared a first-quarter cash dividend of $0.26 per share on its Class A and Class B common stock. This dividend will be paid on March 15, 2023, to shareholders recorded by March 1, 2023. Additionally, the company will release its earnings for the fourth quarter and full year ended December 31, 2022 after the market closes on February 28, 2023. Investors can access further details through www.nelnetinvestors.com.

On January 18, 2023, Nelnet (NYSE: NNI) announced significant staffing changes due to delays in federal student loan repayment and relief programs. The company will lay off approximately 350 recently hired associates and terminate around 210 associates for performance issues within its Nelnet Diversified Services division. These layoffs were necessitated by the extended pause on federal student loan repayment, initially expected to resume by December 31, 2022. Despite the layoffs, Nelnet is committed to supporting student loan borrowers and hopes to redeploy affected associates when repayment resumes.

Nelnet (NYSE: NNI) announced the passing of board member William "Bill" Cintani on December 10, 2022. Cintani joined the board in May 2012 and brought over 40 years of business experience, enhancing Nelnet's strategic direction and financial stability. His leadership was instrumental to the company’s growth through diversification. Executive Chairman Michael Dunlap expressed his profound respect for Cintani, highlighting his mentorship and invaluable contributions over the years. The company extends condolences to Cintani's family during this difficult time.

GRNE Solar, a Midwest leader in solar EPC services, has expanded into Colorado by opening a new branch in Loveland as of December 1, 2022. This expansion is expected to enhance Colorado's solar market and create new jobs. GRNE Solar aims to deliver top-tier solar installations while leveraging its extensive experience, having generated over 35 GWh of renewable energy since its inception. The company was recently acquired by Nelnet, which strengthens its resources for growth in the renewable energy sector.