OneMain Q2 revenue rises on receivables, yield growth
OneMain Q2 revenue rises on receivables, yield growth
Overview
U.S. nonprime lender's Q2 revenue rose 6% yr/yr to $1.6 bln
Adjusted EPS for Q2 was $1.31, beating analyst expectations
Company repurchased $32 mln in shares and declared $1.05 dividend
Outlook
Company did not provide specific guidance for future quarters or the full year in the press release
Result Drivers
RECEIVABLES AND YIELD GROWTH - Revenue growth was driven by higher managed receivables and improved portfolio yield
HIGHER CREDIT COSTS - Provision for finance receivable losses rose due to higher net charge-offs and increased allowance for loan losses
OPERATING EXPENSES - Operating expenses increased 6% due to receivable growth and strategic investments
Company press release: ID:nPn2QHM4Va
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $1.60 bln |
|
Q2 Adjusted EPS | Beat | $1.31 | $1.27 (16 Analysts) |
Q2 EPS |
| $1.32 |
|
Q2 Net Income |
| $152 mln |
|
Q2 Net Interest Income |
| $1.09 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "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 $68.00, about 9.3% above its July 28 closing price of $62.24
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
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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.)