Shares of Nelnet Inc. plummeted over 9% on Thursday after the consumer lending company reported a significant earnings miss for the third quarter of 2024. The company's adjusted earnings per share (EPS) of $0.34 fell well short of analysts' expectations of $1.36 and the year-ago quarter's EPS of $1.15, sending the stock sharply lower.

Despite the earnings disappointment, Nelnet's revenue for the quarter rose 42.5% year-over-year to $469.44 million, exceeding analysts' estimates of $340.16 million. However, the strong top-line growth failed to translate into profit, with the company reporting a net income of just $2.39 million for the quarter.

Analysts had been anticipating a solid performance from Nelnet, with the consensus recommendation on the stock being a "hold" rating. However, the significant earnings miss has raised concerns about the company's profitability and future prospects. The stock's sharp decline on Thursday erased a portion of its gains for the year, with Nelnet shares still up 39.1% year-to-date.