Consumer finance company OneMain Holdings (NYSE: OMF) will be reporting earnings this Friday before market hours. Here’s what investors should know.
OneMain beat analysts’ revenue expectations last quarter, reporting revenues of $1.29 billion, up 6.9% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ net interest income estimates but a significant miss of analysts’ EBITDA estimates.
Is OneMain a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting OneMain’s revenue to grow 5.7% year on year, slowing from the 9.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. OneMain rarely misses Wall Street’s revenue estimates.
Looking at OneMain’s peers in the personal loan segment, some have already reported their Q3 results, giving us a hint as to what we can expect. SoFi delivered year-on-year revenue growth of 44.4%, beating analysts’ expectations by 8.5%, and Happen Bank reported a revenue decline of 1.2%, falling short of estimates by 3%. SoFi traded up 18.3% following the results.
Read our full analysis of SoFi’s results here and Happen Bank’s results here.
There has been positive sentiment among investors in the personal loan segment, with share prices up 2% on average over the last month. OneMain is up 1.4% during the same time and is heading into earnings with an average analyst price target of $67.43 (compared to the current share price of $57.13).
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