OneMain Holdings, Inc. (OMF) plummeted 5.12% in pre-market trading on Friday following the release of its Q4 2024 earnings results that missed analysts' expectations.
The personal loan provider reported adjusted earnings per share of $1.05 for the fourth quarter, trailing the consensus estimate of $1.15 per share. While total revenue increased 9% year-over-year to $1.32 billion, beating forecasts of $1.16 billion, OneMain's profitability was weighed down by higher expenses and deteriorating credit quality.
Net charge-offs as a percentage of average net receivables rose to 7.63% in Q4, up from 7.70% in the prior-year period. The company also saw increases in 30-day and 90-day delinquency ratios compared to a year earlier, reflecting growing stress on borrowers as the economy softened.
OneMain CEO Doug Shulman acknowledged the challenging credit environment but expressed optimism for 2025, stating: "We feel great about our momentum going into 2025, with positive trends in both originations and credit as we continue to focus on driving profitable growth and maximizing shareholder value."
However, investors reacted negatively to the Q4 miss and deteriorating loan performance, sending OneMain shares tumbling over 5% in pre-market trading on Friday.
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