This consumer finance company beat EPS estimates by $0.04 last quarter, and is expected to grow at a 13% annual rate over the next five years.
OneMain Holdings Inc. (OMF)
From AlphaProfit Sector Investors’ Newsletter
Consumer finance company OneMain Holdings Inc. (OMF) is executing well and improving its financial position. During the second quarter, OneMain earned $1.18 a share, beating analysts’ forecast by 4 cents a share. Loan originations rose 9%.
The lender is on target to reduce its leverage ratio to 7.0 by year-end, having already cut the ratio to 8.1 last quarter from 9.9 a year ago.
OneMain shares whet the appetite of growth-at-a-reasonable-price investors. They trade at 5.7X-forward EPS versus prospects for 21% EPS growth in the next 12 months. (Next earnings: ~ Oct. 31)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com,
281-565-6963, October 2018