LendingClub Q2 revenue up 33%, beats estimates
Overview
LendingClub Q2 revenue rises 33%, beating analyst expectations, per LSEG data
Net income surges 156% to $38.2 mln
Co extends $3.4 bln loan funding partnership with Blue Owl
Outlook
LendingClub expects Q3 loan originations of $2.5 bln to $2.6 bln
Company projects Q3 PPNR of $90 mln to $100 mln
LendingClub anticipates Q3 ROTCE of 10% to 11.5%
Result Drivers
ORIGINATIONS GROWTH - Loan originations increased 32% to $2.4 bln, driven by successful product and marketing initiatives
CREDIT OUTPERFORMANCE - Achieved 40% better credit performance compared to competitors, contributing to strong net income growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $248.40 mln | $227.50 mln (10 Analysts) |
Q2 EPS |
| $0.33 |
|
Q2 Net Income |
| $38.20 mln |
|
Q2 Credit Loss Provision |
| $39.70 mln |
|
Q2 Pretax Profit |
| $54 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for LendingClub Corp is $14.00, about 7.5% above its July 28 closing price of $12.95
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nPn5Q1LqSa
