NewtekOne Q2 Net Interest Income Surges 56% Y/Y, Guidance Under Review
NEWT sits 56% above its 52-week low of $9.59.
Summary
NewtekOne reported Q2 EPS of $0.48, in line with guidance, but the standout is net interest income jumping 56% year-over-year to $14.96 million, driven by higher loan originations and nearly doubled deposits. The company is re-evaluating its guidance due to an evolving revenue mix, expecting more net interest income and less reliance on loan sale gains going forward. This follows the $650 million shelf registration filed in June and a strategic alliance with Payroc, signaling a shift toward balance sheet growth. The provision for loan credit losses rose to $12.11 million, a figure traders will weigh against the loan growth. With the stock near its 52-week high and a consensus hold rating, the guidance revision and Q3 net interest income outlook could move the needle.
At the time of this announcement, NEWT was trading at $14.95 on NASDAQ in the Finance sector, with a market capitalization of approximately $431.9M. The 52-week trading range was $9.59 to $15.69. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.