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NewtekOne (NEWT) Surges 7.2%: Is This an Indication of Further Gains?
NEWTNewtekOne(NEWT) ZACKS·2025-04-10 17:55

Company Overview - NewtekOne (NEWT) shares increased by 7.2% to close at 10.53,followinganotabletradingvolumecomparedtotypicalsessions,despitea18.510.53, following a notable trading volume compared to typical sessions, despite a 18.5% loss over the past four weeks [1] - The company reported strong preliminary loan and deposit metrics for Q1 2025, with 580 SBA 7(a) loans totaling 213 million originated, and a 7% increase in SBA 7(a) loans held for investment from December 31, 2024 [2][3] Financial Performance - Commercial Real Estate (CRE) loans reached 231million,growing20231 million, growing 20% sequentially, while Commercial & Industrial loans totaled 51 million [3] - SBA 504 loan originations were 17million,AlternativeLoanProgramloansamountedto17 million, Alternative Loan Program loans amounted to 68.5 million, and total deposits grew by 2% to 1.1billion[3]Thecompanyreaffirmedits2025EPSguidanceof1.1 billion [3] - The company reaffirmed its 2025 EPS guidance of 2.10–2.50,citingstrongloananddepositgrowthsupportedbyitstechplatformNewTracker,whichgenerates600900dailyreferrals[3]EarningsExpectationsNewtekOneisexpectedtoreportquarterlyearningsof2.50, citing strong loan and deposit growth supported by its tech platform NewTracker, which generates 600–900 daily referrals [3] Earnings Expectations - NewtekOne is expected to report quarterly earnings of 0.34 per share, reflecting a year-over-year decline of 10.5%, with revenues projected at 64.67million,an1164.67 million, an 11% increase from the previous year [4] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [6] Industry Context - NewtekOne is part of the Zacks Financial - Miscellaneous Services industry, where Lument Finance (LFT) also operates, closing 4.7% higher at 2.44, but has returned -13.1% in the past month [6] - Lument's consensus EPS estimate has decreased by 19.1% over the past month to $0.10, representing a year-over-year change of -33.3%, and currently holds a Zacks Rank of 4 (Sell) [7]