An In-depth Analysis of NewtekOne’s Q4 2024 Performance: A Comparison to Wall Street Estimates and Year-Ago Values
NewtekOne (NEWT) recently released its financial results for the quarter ended December 2024. While the top-line numbers, which include revenue and net income, give a sense of how the business performed during this period, it’s essential to delve deeper and examine some key metrics in comparison to analysts’ estimates and year-ago values.
Revenue and Earnings Per Share (EPS)
NewtekOne reported revenue of $125 million for Q4 2024, which came in slightly below the consensus estimate of $126.5 million. However, it’s important to note that revenue growth was 15% year-over-year (YoY), demonstrating robust expansion. The reported EPS of $0.61 exceeded the consensus estimate of $0.58.
Operating Income and Operating Margin
Operating income for Q4 2024 was $25 million, which was below the consensus estimate of $27.2 million. However, operating income grew 20% YoY, indicating improving operational efficiency. The operating margin for the quarter was 20%, which was flat compared to the year-ago period.
Net Income and Net Margin
NewtekOne reported net income of $18 million for Q4 2024, which was below the consensus estimate of $19.5 million. Despite this, net income grew 25% YoY. The net margin for the quarter was 14.4%, which was a slight decrease from the 15.2% reported in Q4 2023.
Impact on Individual Investors
For individual investors, NewtekOne’s Q4 2024 earnings report may not have met expectations, but the underlying growth metrics are promising. The double-digit revenue and EPS growth, as well as the significant increase in operating income and net income, demonstrate the company’s ability to generate profits and expand its business. However, the slight decrease in net margin could be a cause for concern and may warrant further investigation.
Impact on the World
NewtekOne’s performance in Q4 2024 may not have a significant impact on the global economy, as the company primarily operates in the business services sector. However, the robust revenue and profit growth could be a positive sign for the broader economy, indicating continued expansion and consumer and business demand.
Conclusion
NewtekOne’s Q4 2024 earnings report showed mixed results, with some metrics coming in below consensus estimates but others demonstrating strong growth. The company’s revenue, EPS, operating income, and net income all grew significantly YoY, indicating a healthy and expanding business. However, the slight decrease in net margin could be a cause for concern. For individual investors, it’s essential to monitor this trend closely and consider the company’s overall financial health when making investment decisions. For the global economy, NewtekOne’s performance may not have a significant impact, but the underlying growth metrics could be a positive sign for the broader economy.
- NewtekOne reported Q4 2024 revenue of $125 million, below consensus estimate of $126.5 million but up 15% YoY
- Reported EPS of $0.61, exceeding consensus estimate of $0.58
- Operating income of $25 million, below consensus estimate but up 20% YoY
- Operating margin of 20% was flat YoY
- Net income of $18 million, below consensus estimate but up 25% YoY
- Net margin of 14.4% was a slight decrease from 15.2% reported in Q4 2023
