Navient reports Q3 core EPS $1.45, consensus 25c

GAAP and Core Earnings results included a net increase to pre-tax income of $166M comprised of: A gain of $219M from the sale of Xtend Healthcare, its healthcare services business; $21M of provision for loan losses related to lowering the expected recovery rate on defaulted Private Education Loans; $18M of restructuring expenses and $14M of regulatory-related expenses, primarily related to the settlement agreement with the CFPB in September, eliminating the overhang of a contingent liability. “The third quarter was highly productive as we reached variable-cost economics on our loan servicing activities, completed the sale of our healthcare business, and continued to reduce our corporate expenses,” said David Yowan, president and CEO, Navient (NAVI). “We saw healthy growth within our lending business, including a 31% year-over-year increase in loan originations. We are more than doubling our targeted share repurchases in the fourth quarter compared to the third quarter.”