OneMain Q4 net income rises on increase in managed receivables

Reuters02-05
OneMain Q4 net income rises on increase in managed receivables

Overview

  • Nonprime credit provider's Q4 net income rose yr/yr, EPS up to $1.72

  • Company repurchased 1.2 mln shares for $70 mln

  • Managed receivables grew 6% yr/yr to $26.3 bln

Outlook

  • Company did not provide specific financial guidance for future periods

Result Drivers

  • RECEIVABLE GROWTH - Co reported a 6% increase in managed receivables, contributing to higher interest income and net income

  • YIELD IMPROVEMENT - Improved portfolio yield contributed to an 8% increase in interest income

  • STRATEGIC INVESTMENTS - Operating expenses rose 5% due to strategic investments and receivable growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 EPS

$1.72

Q4 Net Income

$204 mln

Q4 Net Interest Income

$1.09 bln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $75.00, about 18.7% above its February 4 closing price of $63.20

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

Press Release: ID:nPn1P9j5Na

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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.)

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