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OneMain plunges on earnings miss, big cut in guidance

Published 11/08/2016, 07:28 AM
OneMain plunges on earnings miss, big cut in guidance
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  • Alongside its Q3 report, the company last night slashed its guidance for net receivables growth this year to 5% from 10-15% previously; for 2017, net receivables growth is now seen at 5-10% vs. 10-15% previously.
  • As for EPS, 2016 is now being guided to $3.60-$3.70 from $4.20-$4.70; 2017 is cut to $3.75-$4 from $5.60-$6.10.
  • Speaking on the earnings call, CEO Jay Levine notes an increase in the amount of credit available to sub-660 FICO borrowers, and the company is going to begin proceeding more cautiously. Also assisting in the guidance cut is a decline in productivity amid the Springleaf integration. Levine and team expect this to pass.
  • The sell-side is bailing, with Citigroup (NYSE:C), Deutsche Bank (DE:DBKGn) , and BAML among those downgrading.
  • OMF -35% premarket
  • OneMain Financial Earnings Center
  • Earnings call presentation slides

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