OneMain (NYSE:OMF) Issues Earnings Results, Misses Estimates By $0.05 EPS

OneMain (NYSE:OMF) announced its quarterly earnings data on Friday. The financial services provider reported $1.51 EPS for the quarter, missing analysts’ consensus estimates of $1.56 by ($0.05), Zacks reports. The firm had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.34 billion. OneMain had a net margin of 13.92% and a return on equity of 23.49%. During the same period last year, the business earned $1.90 EPS.

Here are the key takeaways from OneMain’s conference call:

• Receivables growth accelerated 9% year over year to $28.1 billion, while originations increased 17%. Management raised its full-year managed-receivables growth outlook to the high end of its prior range, or 9%.
• Credit trends improved across the portfolio. Consumer-loan delinquencies and charge-offs declined sequentially and year over year, with management expecting lower year-over-year losses in the fourth quarter and further normalization toward approximately 7% in 2027, assuming a stable macroeconomic environment.
• The credit-card and auto businesses continued to scale rapidly. Credit-card originations rose 84%, purchase volume increased 82%, and receivables reached $1.4 billion, while auto receivables grew 16%; card charge-offs also fell 274 basis points year over year to 13.9%.
• Capital generation and shareholder returns remained strong. Quarterly capital generation rose 4% to $284 million, the company returned more than $500 million to shareholders year to date through dividends and repurchases, and management said incremental capital returns will increasingly favor buybacks while maintaining the current dividend.
• OneMain strengthened liquidity with $2.3 billion of ABS and unsecured debt issuance at attractive spreads, but funding costs are expected to remain around current levels and the overall reserve ratio is projected to rise to approximately 11.8% in the fourth quarter as the higher-reserve credit-card portfolio grows.

OneMain Stock Down 4.7%

NYSE:OMF traded down $2.78 on Friday, hitting $56.56. The stock had a trading volume of 1,294,667 shares, compared to its average volume of 1,212,610. OneMain has a 52 week low of $45.78 and a 52 week high of $71.93. The business’s fifty day moving average is $59.13 and its 200 day moving average is $58.51. The company has a market cap of $6.51 billion, a PE ratio of 8.52, a P/E/G ratio of 0.65 and a beta of 1.24.

Insider Activity

In related news, COO Micah Conrad sold 5,000 shares of OneMain stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $65.40, for a total value of $327,000.00. Following the completion of the sale, the chief operating officer owned 91,250 shares of the company’s stock, valued at approximately $5,967,750. This trade represents a 5.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.29% of the stock is currently owned by corporate insiders.

More OneMain News

Here are the key news stories impacting OneMain this week:

• Positive Sentiment: OneMain declared a quarterly dividend of $1.05 per share, supporting the stock’s income appeal. Managed receivables reached $28.1 billion, indicating a substantial lending platform. OneMain Holdings Third Quarter 2026 Results
• Neutral Sentiment: The company reported third-quarter diluted EPS of $1.60, while adjusted diluted EPS was $1.51. The difference between the measures makes the underlying quarter more important to assess than the headline GAAP figure. OneMain Q3 2026 Earnings Call Transcript
• Neutral Sentiment: OMF’s stock recently moved above its 200-day moving average, a potentially favorable technical signal, although the broader market reaction was dominated by the earnings results. OneMain Stock Crosses Above Two Hundred Day Moving Average
• Negative Sentiment: Adjusted EPS of $1.51 missed the consensus estimate of $1.56 and declined from $1.90 a year earlier. Net income fell to $185 million from $199 million, while pretax income declined to $233 million from $263 million. OneMain Q3 Earnings Miss Estimates
• Negative Sentiment: The results suggest pressure on earnings growth and credit performance at OneMain’s nonprime consumer lending business, likely outweighing the dividend and receivables growth in investor sentiment. OneMain Key Metrics Versus Estimates

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Citigroup reissued a “market outperform” rating on shares of OneMain in a report on Thursday, July 30th. Truist Financial increased their price objective on shares of OneMain from $70.00 to $71.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. lowered their price target on OneMain from $60.00 to $52.00 and set an “underweight” rating for the company in a report on Monday, October 12th. Royal Bank Of Canada dropped their price objective on shares of OneMain from $73.00 to $71.00 and set an “outperform” rating for the company in a research note on Friday, October 16th. Finally, Barclays reduced their price target on OneMain from $61.00 to $60.00 and set an “equal weight” rating on the stock in a report on Tuesday, July 7th. Eight equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $67.09.

About OneMain

OneMain Holdings, Inc, operating under the OneMain Financial brand, is a consumer finance company that provides personal lending and related financial services primarily to non-prime consumers in the United States. The company serves customers through a combination of branch locations, online and mobile channels, and centralized customer service operations.

OneMain’s principal products include secured and unsecured personal loans, which customers may use for debt consolidation, home improvements, major purchases, and other personal expenses.