OneMain Holdings Q1 Earnings Beat on Higher NII, Stock Down 1.1%

OneMain Holdings’ OMF first-quarter 2025 adjusted earnings of $1.72 per share surpassed the Zacks Consensus Estimate of $1.55. Moreover, the bottom line increased 18.6% from the year-ago quarter.In the reported quarter, the company witnessed an increase in net interest income (“NII”) and other revenues. However, a rise in provisions and total other expenses was an undermining factor. A decline in loan balances was another negative. Due to these concerns, shares of OMF declined 1.1% on Tuesday.After considering non-recurring items, net income available to common shareholders (on a GAAP basis) was $213 million, up from $155 million in the prior-year quarter.OMF’s NII Rises, Expenses UpNII was up 11.2% from the prior-year quarter to $96 million. The increase was primarily driven by higher net finance receivables and improved yield. Total other revenues were $188 million, up 4.4% from the prior-year quarter. The rise was driven by an increase in gains on sales of finance receivables and other revenues. Total other expenses rose 2.7% to $453 million on account of higher operating expenses.Credit Quality Deteriorates for OneMain HoldingsThe provision for finance receivable losses was $456 million, up 5.8% from the prior-year quarter.In the reported quarter, OneMain Holdings recorded net charge-offs of $473 million, up 3.5% from the prior-year quarter. The company reported 30-89 days delinquencies of $630 million, up 12.1%.On the other hand, the allowance ratio of 11.52% was down from 11.64% in the prior-year quarter.OMF’s Net Finance Receivable Declines, Debt IncreasesAs of March 31, 2025, total net finance receivables amounted to $23.4 billion, down 1% from the prior quarter end. Long-term debt increased marginally from the prior quarter end to $21.5 billion.OneMain Holdings’ Share Repurchase UpdateIn the reported quarter, the company repurchased 323 thousand shares for $16 million.Our View on OneMain HoldingsOneMain Holdings’ efforts to grow credit card and auto finance loans alongside relatively lower interest rates and strategic acquisitions are expected to support its financials. A decent balance sheet and liquidity position are other positives. However, rising expenses and deteriorating asset quality are woes.OneMain Holdings, Inc. Price, Consensus and EPS Surprise OneMain Holdings, Inc. price-consensus-eps-surprise-chart | OneMain Holdings, Inc. QuoteCurrently, OneMain Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of OMF’s PeersAlly Financial’s ALLY first-quarter 2025 adjusted earnings of 58 cents per share handily surpassed the Zacks Consensus Estimate of 43 cents. Also, the bottom line reflected a jump of 41.5% from the year-ago quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)ALLY’s results benefited from a rise in net finance revenues and lower provisions. However, lower other revenues, higher non-interest expenses and a decline in net finance receivables and loans and deposits were the undermining factors.Capital One’s COF first-quarter 2025 adjusted earnings of $4.06 per share handily surpassed the Zacks Consensus Estimate of $3.66. The bottom line also compared favorably with $3.21 in the prior-year quarter.Results benefited from higher NII and non-interest income. Also, provisions declined during the quarter. However, the increase in expenses and lower loan balance were undermining factors for COF.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Capital One Financial Corporation (COF): Free Stock Analysis Report Ally Financial Inc. (ALLY): Free Stock Analysis Report OneMain Holdings, Inc. (OMF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks