Why LendingClub Stock Took A Hit After-Hours
Portfolio Pulse from Ryan Gustafson
LendingClub Corp (NYSE:LC) reported Q4 earnings of $0.09 per share, beating estimates by 350%, and sales of $185.60 million, slightly above expectations but a 29.35% decrease YoY. Loan originations increased to $1.6 billion, and deposits grew to $7.3 billion. However, PPNR fell to $55.6 million from $72.8 million in the previous quarter. The company forecasts Q1 loan originations of $1.5-$1.7 billion and PPNR of $30-$40 million. Despite positive earnings, LC shares dropped 3.20% after-hours.
January 30, 2024 | 10:01 pm
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NEGATIVE IMPACT
LendingClub exceeded Q4 EPS estimates and reported higher sales, but experienced a YoY decrease in sales and a drop in after-hours trading. Q1 guidance shows growth in loan originations but a lower PPNR forecast.
Despite beating earnings estimates, the year-over-year decrease in sales and the drop in PPNR may concern investors about the company's growth trajectory, leading to the after-hours stock price decline. The Q1 guidance indicates potential for growth in loan originations but also suggests a cautious outlook with lower PPNR, which could further impact investor sentiment in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100