OneMain Q3 revenue rises 7% on loan growth

Overview

• U.S. nonprime lender's Q3 total revenue rose 7% yr/yr, driven by receivables and loan growth

• Q3 diluted EPS fell to $1.60 from $1.67 a year earlier

• Company repurchased $34 mln in shares during the quarter

Outlook

• Company did not provide specific financial guidance in the press release

Result Drivers

• LOAN ORIGINATIONS - Co said higher consumer loan originations contributed to revenue growth

• RECEIVABLES GROWTH - Co attributed increased interest income to growth in managed receivables

• OPERATING EXPENSES - Co said higher operating expenses reflected receivable growth and strategic investments

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for OneMain Holdings, Inc. is $67.00, about 12.9% above its October 29 closing price of $59.34

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)