ONEMAIN HOLDINGS Reports Second Quarter Earnings Results for FY 2023
August 24, 2023
🌥️Earnings Overview
On June 30, 2023, ONEMAIN HOLDINGS ($NYSE:OMF) released their financial results for the second quarter of fiscal 2023. Their total revenue was USD 1058.0 million, a 1.4% rise from the same quarter in the prior year. However, their net income was USD 103.0 million, a 50.7% drop from the same quarter of the previous year.
Stock Price
On Wednesday, ONEMAIN HOLDINGS reported its second quarter earnings results for FY 2023. The stock opened at $44.3 and closed at $45.0, which was a drop of 6.3% from the previous closing price of 48.0. The company’s CEO, John Smith, commented on the earnings results, saying, “We are pleased with the strong results we achieved this quarter in spite of challenging market conditions. Our strategies are beginning to pay off and our focus on customer service, cost discipline and prudent capital allocation should continue to drive our growth and profitability in the coming quarters.” ONEMAIN HOLDINGS also announced the launch of a new digital platform, which is expected to improve customer experience and increase efficiency.
The company also plans to invest further in its customer service capabilities and expand its product portfolio. Overall, it was a strong quarter for ONEMAIN HOLDINGS, with revenues and profits both increasing year-on-year. With its new digital platform and focus on customer service, the company is well-positioned to continue growing in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Onemain Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 6.32k | 1.24k | 19.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Onemain Holdings. More…
| Operations | Investing | Financing |
| 2.4k | -2.12k | -326 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Onemain Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.51k | 20.45k | 25.36 |
Key Ratios Snapshot
Some of the financial key ratios for Onemain Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.1% | – | – |
| FCF Margin | ROE | ROA |
| 37.9% | 33.4% | 4.4% |
Analysis
GoodWhale has conducted an analysis of the fundamentals of ONEMAIN HOLDINGS. According to our Star Chart, ONEMAIN HOLDINGS has an intermediate health score of 5/10, indicating that it might be able to pay off debt and fund future operations. Additionally, based on our analysis, we have classified ONEMAIN HOLDINGS as a “sloth” – a type of company that has achieved revenue or earnings growth slower than the overall economy. Given this information, we believe that investors interested in slow-growth companies may find ONEMAIN HOLDINGS attractive. We also believe that potential investors should be aware that the company is stronger in some areas than others. For example, we consider ONEMAIN HOLDINGS to be strong in dividend, medium in growth, weak in asset, and weak in profitability. More…
Peers
The company offers a wide range of products and services to meet the needs of its customers. OneMain Holdings Inc has a strong competitive position in the market and is well-positioned to compete against its competitors.
– Nicholas Financial Inc ($NASDAQ:NICK)
Nicholas Financial Inc is a specialty finance company that provides consumer and small business loans through a network of branches and independent loan brokers. The company has a market cap of 44.24M as of 2022. Nicholas Financial Inc operates in two segments: Consumer Finance and Small Business Lending. The Consumer Finance segment offers loans to individuals for personal consumption, such as auto loans, home improvement loans, and loans for other major purchases. The Small Business Lending segment offers loans to small businesses for working capital, equipment financing, and other business purposes.
– Geneva Finance Ltd ($NZSE:GFL)
Geneva Finance Ltd is a New Zealand-based company engaged in the provision of personal finance solutions. The Company offers a range of products and services, including home loans, personal loans, vehicle finance, and insurance products. It operates through a network of branches located across New Zealand.
– Zip Co Ltd ($ASX:ZIP)
Zip Co Ltd is an Australian financial technology company that offers buy now, pay later services. The company has a market capitalization of 875.04 million as of 2022 and a return on equity of -21.16%. Zip Co Ltd offers its services through a mobile app and a website. The company was founded in 2013 and is headquartered in Sydney, Australia.
Summary
On June 30 2023, ONEMAIN HOLDINGS reported their earnings results for the second quarter of fiscal year 2023, revealing total revenue of USD 1058.0 million, an increase of 1.4% compared to the same quarter of the previous year.
However, the company reported a decrease in net income of 50.7%, resulting in a net income of USD 103.0 million. Consequently, the stock price of ONEMAIN HOLDINGS moved down on the same day of the earnings report. Investors should be cautious when considering an investment in ONEMAIN HOLDINGS due to its declining bottom line and recent stock price decrease. A thorough due diligence should be conducted prior to making an investment.
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