OneMain Holdings Inc (NYSE: OMF) stock rises on solid bottom line

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OneMain Holdings Inc (NYSE: OMF) stock rose over 4.8% on 11th Feb, 2020 (as of 10:19 am GMT-5 ; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. OMF has reported the pretax income of $344 million and net income of $261 million for the fourth quarter of 2019, compared to $214 million and $168 million, respectively, in the prior year quarter. At the end of December, 2019, the company’s principal debt balances outstanding stood to $17.5 billion, 44% of which was secured and 56% of which was unsecured. The company had $1.2 billion of cash and cash equivalents, which included $182 million of cash and cash equivalents held at the regulated insurance subsidiaries or for other operating activities that are unavailable for general corporate purposes. The company had $7.1 billion of undrawn revolving conduit facilities and $9.9 billion of unencumbered personal loans.

OMF in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.96, beating the analysts’ estimates for the adjusted earnings per share of $1.72, as per the Zacks Consensus Estimate. The company had reported the adjusted revenue of $855 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue by 2.72%.

Consumer and Insurance Segment (C&I) had reported the adjusted pretax income of $352 million and adjusted net income of $268 million for the fourth quarter of 2019, compared to $248 million and $189 million, respectively, in the prior year quarter. Originations were of total $3.7 billion in the fourth quarter of 2019, which is up 13% from $3.3 billion in the prior year quarter. The percentage of secured originations was 54% in the fourth quarter of 2019, which is also up from 53% in the prior year quarter. Ending net finance receivables stood at $18.4 billion at December 31, 2019, which is up 14% from $16.2 billion in the prior year quarter. Secured receivables formed $1.8 billion of the increase in ending net finance receivables from the prior year and were 52% of ending net finance receivables at December 31, 2019, which is an increase from 47% in the prior year quarter.

Additionally, OMF has increased the quarterly dividend by 32% to $0.33 and the declaration of a $2.50 special dividend. These regular and special dividends will be paid on March 13, 2020 to record holders of our common stock as of the close of business on February 26, 2020.

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