First Marblehead Reports Smaller 4Q Loss
BOSTON (AP) ¿ The First Marblehead Corp., which packages students loans for sale to investors, on Monday said its fiscal fourth-quarter loss narrowed from the year before.
The net loss for the quarter was $36.1 million, or 36 cents a share, compared to a loss of $56.7 million, or 57 cents per share, in the year-ago period.
Revenue increased to $11.6 million, compared to loss of $33.8 million for the same period last year.
For the year, the company reported a loss of $363 million, or $3.66 per share, compared to a loss of $235.1 million, or $2.46 per share, in 2008.Yearly revenue was a loss of $290 million, compared with a smaller loss of $28.4 million the year before. First Marblehead receives fees for helping banks package their private student loans into bonds, which are then sold to investors. Private student loans aren't guaranteed by the government and carry higher interest rates. Investors in recent months have become wary of buying the bonds as defaults among student loans have risen. The company ended the quarter with $167.2 million in cash, cash equivalents and investments on the balance sheet. Net operating cash usage for the latest quarter was about $11 million.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV