Benzinga | Oct 23, 2020 10:09AM EDT

Earnings Preview for OneMain Holdings

On Monday, October 26, OneMain Holdings (NYSE: OMF) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

OneMain Holdings earnings will be near $1.22 per share on sales of $805.92 million, according to analysts. In the same quarter last year, OneMain Holdings reported earnings per share of $1.77 on revenue of $821.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 31.07%. Revenue would be down 1.84% from the year-ago period. OneMain Holdings's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.22 0.98 1.74 1.58EPS Actual 0.80 0.33 1.96 1.77Revenue Estimate 773.29 M 859.12 M 832.10 M 786.69 MRevenue Actual 806.00 M 851.00 M 855.00 M 821.00 M

Stock Performance

Shares of OneMain Holdings were trading at $36.49 as of October 22. Over the last 52-week period, shares are down 3.17%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. OneMain Holdings is scheduled to hold the call at 08:00:00 ET and can be accessed here.