How did NAVI's Q4 2024 earnings surprise investors?

Navient's Q4 2024 earnings report surprised investors in several ways:

1. **Revenue Growth**: Navient reported strong loan origination growth, with year-to-date loan originations reaching $1.37 billion, a 39% increase from the previous year. This growth was likely driven by demand for Navient's loan products, which could have contributed to higher revenues.
2. **Earnings Performance**: Navient reported a GAAP EPS loss of $0.02 for the third quarter, primarily due to a goodwill and intangible asset impairment related to its Government Services business. This was a significant negative surprise, as it indicated a substantial impairment of the company's assets.
3. **Expense Reductions**: Navient has achieved significant expense reductions by outsourcing loan servicing and transitioning to a variable cost-based servicing structure. These cost-saving measures could have positively surprised investors by improving the company's profitability.
4. **Settlement of Investigations**: Navient settled a long-standing investigation and litigation with the CFPB, removing a contingent liability overhang and aligning with its future activities. This settlement likely provided a sense of relief to investors regarding legal uncertainties and potential liabilities.

Overall, Navient's Q4 2024 earnings report was mixed, with positive surprises in loan origination growth and expense reductions, but negative surprises in earnings performance due to asset impairments. The company's strategic initiatives and cost-saving measures may have contributed to its resilience in the face of challenging market conditions.