Nelnet Share Jump On Strong 1st-quarter Profit

NEW YORK (AP) — Shares of Nelnet Inc. leapt in Tuesday trading after the student lender posted a strong profit for the first quarter, reversing a year-ago loss.

The stock jumped $1.79, or 27.5 percent, to $8.25 in midday trading, with volume already topping average daily trade. Shares have changed hands between $4.06 and $19.79 in the past 52 weeks, and started the day down about 55 percent since the beginning of the year.

Late Monday, the Lincoln, Neb.-based company posted profit for the three months ended March 31 of $25.5 million, or 52 cents per share. That compares with a loss of $69.8 million, or $1.42 per share, in the year-ago quarter.

Adjusted for discontinued operations, restructuring, impairment and other items, the company said it earned 64 cents per share.

Analysts polled by Thomson Reuters, on average, expected profit of 20 cents per share. Analysts typically exclude one-time items from their estimates.

Net interest income, or money earned from loan and investment interest, rose to $28.5 million from $16.5 million last year. The company increased its loan loss provision — the money set aside to cover unpaid loans — to $7.5 million from $5 million a year ago.

Operating expenses dropped 28 percent to $92.6 million.

Nelnet said it held net student loan assets of $25.6 billion at quarter's end. The company said it has liquidity for new loan originations through federal programs from the Education Department, which will allow it to make loans through the next school year.