OneMain Q3 revenue rises 7% on loan growth

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.60

Q3 Net Income

$185 mln

Q3 Net Interest Income

$1.15 bln


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


Reuters Recommended Reads

  • Oct 28 - OppFi Q3 profit beats estimates on product launch, pricing initiatives

  • Oct 29 - Medallion Financial Q3 profit drops on higher credit loss provisions


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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