NewtekOne (NEWT) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Insights - NewtekOne (NEWT) is projected to report quarterly earnings of $0.65 per share, a decline of 5.8% year-over-year, with revenues expected to reach $80.99 million, reflecting a 7.5% increase compared to the same period last year [1] Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 4% over the past 30 days, indicating a reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Key Financial Metrics - Analysts estimate 'Total noninterest income' to be $62.12 million, down from $64.07 million year-over-year [4] - 'Net interest income' is predicted at $18.87 million, compared to $11.29 million reported in the same quarter last year [5] - 'Noninterest income- Servicing income' is expected to reach $5.50 million, slightly up from $5.17 million year-over-year [5] - 'Noninterest income- Net gains on sales of loans' is forecasted at $16.55 million, down from $28.65 million in the same quarter last year [6] - 'Noninterest income- Electronic payment processing income' is projected to be $12.27 million, an increase from $10.64 million year-over-year [6] - 'Noninterest income- Other noninterest income' is expected to be $10.73 million, down from $11.74 million year-over-year [7] - 'Noninterest income- Net gain (loss) on loans under the fair value option' is anticipated to be -$1.50 million, a significant drop from $9.38 million reported in the same quarter last year [7] Stock Performance - NewtekOne shares have increased by 20.2% over the past month, compared to a 0.4% increase in the Zacks S&P 500 composite [7] - With a Zacks Rank of 4 (Sell), NewtekOne is expected to underperform the overall market in the near future [7]