Consumer finance company OneMain Holdings (NYSE: OMF) will be reporting results this Thursday before market hours. Here’s what you need to know.
OneMain beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $1.27 billion, up 9.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and .
Is OneMain a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting OneMain’s revenue to grow 8.3% year on year to $1.28 billion, improving from the 7.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.54 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. OneMain has missed Wall Street’s revenue estimates twice over the last two years.
Looking at OneMain’s peers in the personal loan segment, some have already reported their Q4 results, giving us a hint as to what we can expect. SoFi delivered year-on-year revenue growth of 37%, beating analysts’ expectations by 2.7%, and LendingClub reported revenues up 22.7%, topping estimates by 1.8%. SoFi traded down 9.4% following the results while LendingClub was also down 16%.
Read our full analysis of SoFi’s results here and LendingClub’s results here.
While some of the personal loan stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. OneMain is down 7.3% during the same time and is heading into earnings with an average analyst price target of $74.79 (compared to the current share price of $64.31).
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