Group 1 - OneMain Holdings (NYSE: OMF) has experienced a mixed performance over the past year, with a loss of approximately 4% but an 8% dividend payout [1] - The company reported solid Q1 results, yet its shares fell by about 1% following the announcement, with a further decline observed on the subsequent day [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - OneMain Holdings reported strong adjusted earnings for Q1 2025, exceeding consensus estimates, but faced challenges with rising expenses and declining loan balances [1][2][3]. Financial Performance - Adjusted earnings per share were $1.72, surpassing the Zacks Consensus Estimate of $1.55, and increased by 18.6% year-over-year [1]. - Net income available to common shareholders on a GAAP basis was $213 million, up from $155 million in the prior-year quarter [2]. - Net interest income (NII) rose by 11.2% to $96 million, driven by higher net finance receivables and improved yield [3]. - Total other revenues increased by 4.4% to $188 million, attributed to gains on sales of finance receivables [3]. Expenses and Provisions - Total other expenses rose by 2.7% to $453 million due to higher operating expenses [3]. - The provision for finance receivable losses was $456 million, up 5.8% from the prior-year quarter [4]. - Net charge-offs were $473 million, reflecting a 3.5% increase year-over-year [4]. Credit Quality - Delinquencies of 30-89 days increased to $630 million, up 12.1% [4]. - The allowance ratio decreased to 11.52% from 11.64% in the prior-year quarter [4]. Balance Sheet and Debt - Total net finance receivables as of March 31, 2025, were $23.4 billion, down 1% from the prior quarter [5]. - Long-term debt increased slightly to $21.5 billion [5]. Share Repurchase - The company repurchased 323 thousand shares for $16 million during the reported quarter [6]. Strategic Outlook - OneMain Holdings aims to grow credit card and auto finance loans, supported by lower interest rates and strategic acquisitions, although rising expenses and deteriorating asset quality present challenges [7].

Financial Data and Key Metrics Changes - Capital generation increased to $194 million, up 25% year over year [6][18] - C&I adjusted earnings were $1.72 per share, reflecting a 19% increase [6][18] - Receivables grew by 12% year over year, totaling $24.6 billion [18][19] - Total revenue reached $1.5 billion, a 10% increase compared to the previous year [21] - First quarter GAAP net income was $213 million, or $1.78 per diluted share, up 38% from the previous year [18] Business Line Data and Key Metrics Changes - Originations grew by 20% year over year, totaling $3 billion, with organic growth at 13% [19] - Credit card receivables ended at $676 million, while auto finance receivables reached $2.5 billion [9][10] - Consumer loan net charge-offs were 7.8%, down 75 basis points year over year [26] - C&I net charge-offs were 8.2%, down 49 basis points from the previous year [26] Market Data and Key Metrics Changes - The company serves over 3.4 million customers, a 14% increase from a year ago [8] - 30+ day delinquency rate was 5.08%, down 49 basis points year over year [24] - Consumer loan yield was 22.4%, up 28 basis points year over year [20] Company Strategy and Development Direction - The company is focused on long-term profitable growth through strategic initiatives and product innovation [5][14] - Plans to form OneMain Bank, an industrial loan company (ILC), to enhance market access and operational efficiency [13][14] - The company maintains a conservative underwriting posture while preparing to ramp growth when appropriate [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macroeconomic environment, citing a strong balance sheet and credit expertise [5][11] - Positive credit trends and improved delinquency metrics are expected to continue, enhancing loss performance [24][26] - The company anticipates managed receivables growth of 5% to 8% and total revenue growth of 6% to 8% for 2025 [32] Other Important Information - The company raised $1.5 billion in secured and unsecured markets, demonstrating strong market access [17][30] - Operating expenses were $400 million, down 5% from the previous quarter [29] - The company repurchased 323,000 shares for approximately $16 million during the first quarter [16] Q&A Session Summary Question: Benefits of the ILC - Management stated that the ILC would allow for market expansion, simplified operations, and access to deposit funding without becoming a bank holding company [36][39] Question: Credit Performance Trends - Management noted improvements in delinquency rates and credit performance, with trends being monitored closely [42][44] Question: Reserve Ratio and Credit Trends - The reserve ratio remains unchanged due to macroeconomic uncertainty, with adjustments dependent on future economic conditions [47][49] Question: Growth in New Products - Management indicated that growth in new products would be considered once macroeconomic conditions stabilize [50][52] Question: Recovery Performance - Strong recovery performance was attributed to internal collection efforts rather than used car prices, with expectations for similar future performance [55][58] Question: Credit Card Delinquency and Charge-Offs - Credit card delinquency trends are positive, with charge-off expectations set for the long term rather than for 2025 [104][106] Question: M&A Interest - Management was asked about potential acquisitions to build out growth areas, indicating a focus on the ILC process for now [107]

Financial Performance - Originations reached $3 billion, a 20% year-over-year increase (13% organic)[13] - Capital Generation was $194 million, with C&I Adjusted EPS at $1.72[14] - C&I Total Revenue increased by 10% year-over-year to $1.5 billion[22] - Adjusted Pretax Income for Consumer & Insurance (C&I) was $275 million[25] Receivables and Portfolio - Managed Receivables totaled $24.6 billion, up 12% year-over-year (6% organic)[15] - Auto Managed Receivables amounted to $2.5 billion, with originations of $342 million[15] - Credit Card Receivables reached $676 million across 836 thousand customer accounts[16] Credit Quality - Consumer Loan net charge-offs decreased by 75bps year-over-year to 7.8%[17] - Consumer Loan 30+ Day Delinquency decreased by 49bps year-over-year to 5.08%[18] - C&I net charge-offs were 8.2%[17] Strategic Priorities - The company expects Managed Receivables Growth of 50%-80% in 2025[83] - The company expects Revenue Growth of 60%-80% in 2025[83] - The company expects an Operating Expense Ratio of ~6.6% in 2025[83]

Financial Data and Key Metrics Changes - Capital generation reached $194 million, up 25% year over year [9][21] - C&I adjusted earnings were $1.72 per share, an increase of 19% [9][21] - Receivables grew by 12% year over year, totaling $24.6 billion [21][22] - Total revenue increased by 10% to $1.5 billion [24] - Originations grew by 20% year over year, with organic growth at 13% [9][22] Business Line Data and Key Metrics Changes - Consumer loan net charge-offs were 7.8%, down 75 basis points year over year [11][29] - C&I net charge-offs were 8.2%, down 49 basis points compared to the previous year [10][29] - The credit card business ended the quarter with $676 million in receivables, while the auto finance business had $2.5 billion [12][12] - The company continues to maintain a conservative underwriting posture across all business lines [13][16] Market Data and Key Metrics Changes - The 30-plus delinquency rate was 5.08%, down 49 basis points year over year [10][27] - The company serves over 3.4 million customers, a 14% increase from the previous year [11] - Consumer loan yield was 22.4%, up 28 basis points year over year [23] Company Strategy and Development Direction - The company is focused on long-term profitable growth through strategic initiatives and product innovation [8][18] - An application to form OneMain Bank, an industrial loan company, is in progress, which could enhance market access and operational efficiency [16][17] - The company aims to maintain a conservative credit posture while preparing to ramp growth when appropriate [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macroeconomic environment, citing a strong balance sheet and credit expertise [7][14] - The company expects managed receivables to grow by 5% to 8% and total revenue by 6% to 8% for the full year 2025 [36] - Management noted that they are not currently seeing weakness in consumer behavior [36][91] Other Important Information - The company raised $1.5 billion in secured and unsecured markets, demonstrating strong market access [20][34] - Operating expenses were $401 million, up 11% year over year, but the expense ratio improved to 6.6% [32][32] Q&A Session Summary Question: Benefits of the ILC - Management discussed that the ILC would allow for market expansion, simplified operations, and access to deposit funding without becoming a bank holding company [40][42][44] Question: Credit Performance and Delinquency Trends - Management noted improvements in delinquency rates and credit performance, with a focus on monitoring trends closely [45][46][47] Question: Reserve Ratio and Credit Outlook - Management explained that the reserve ratio remains unchanged due to macro uncertainty, and future adjustments will depend on credit performance and economic conditions [50][52][96] Question: Growth in New Products - Management indicated that growth in new products like credit cards and auto finance will be considered once macroeconomic conditions stabilize [53][56] Question: Consumer Behavior and Demand - Management reported steady demand across products and no significant changes in consumer sentiment despite macroeconomic volatility [90][91]

OneMain Holdings (OMF) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.97%. A quarter ago, it was expected that this consumer finance company would post earnings of $1.12 per share when it actually produced earnings of $1.16, delivering a surprise of 3.57%.Over the last four quarte ...

ONEMAIN HOLDINGS, INC. REPORTS FIRST QUARTER 2025 RESULTS New York, NY, April 29, 2025 - OneMain Holdings, Inc. (NYSE: OMF), the leader in offering nonprime consumers responsible access to credit, today reported pretax income of $275 million and net income of $213 million for the first quarter of 2025, compared to $204 million and $155 million, respectively, in the prior year quarter. Earnings per diluted share were $1.78 in the first quarter of 2025, compared to $1.29 in the prior year quarter. On April 29 ...

On CNBC's “Mad Money Lightning Round,” Jim Cramer recommended buying Reddit, Inc. RDDT, calling it a “very good” stock.On the earnings front, Reddit will release its first-quarter financial results after market close on Thursday, May 1. Analysts expect the company to report quarterly earnings at 2 cents per share on revenue of $370.12 million.Cramer said he likes Brookfield Asset Management Ltd. BAM and added, “Those guys are real good.”Supporting his view, B of A Securities analyst Craig Siegenthaler upgra ...

OneMain Holdings (OMF) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 29, 2025, might help the stock move higher if these key numbers are better than ...

NEW YORK, April 8, 2025 /PRNewswire/ -- OneMain Holdings, Inc. (NYSE: OMF), the leader in offering nonprime consumers responsible access to credit, plans to report its first quarter 2025 results before the market opens on Tuesday, April 29, 2025. The earnings release will be available on OneMain's investor relations website at http://investor.onemainfinancial.com.A conference call to discuss the company's results, outlook and related matters will be held that morning at 9:00 a.m. Eastern. The general public ...