Sallie Mae Reports Improved Earnings

Student Loan Marketing Association said its earnings increased about 15 percent in the first quarter as it boosted its investment portfolio of student loans.

The company, better known as Sallie Mae, said first-quarter net income rose to $118.84 million, or $2.17 a share, from $102.90 million, or $1.74, in the year-ago quarter. The results beat the average Wall Street estimate of $1.87 per share.

“This was a real blowout,” said Thomas O’Donnell, an analyst at Smith Barney Inc. “Management came in with a real strong quarter which shows the company’s internal profitability is strong and the company is leaner and meaner than ever before.”