LendingClub soars 57% to 3-year high after reporting its most profitable quarter ever
LendingClubsoared as much as 57% after second quarter earnings results revealed its most profitable quarter ever.
- The personal loan provider saw revenue soar 406% to $204 million, easily beating analyst estimates.
- Even with shares hitting a three-year high, LendingClub is still down 83% from its record 2014 high.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
View all Offers
- 27% OFF
Samsung Galaxy M12 (Blue,4GB RAM, 64GB Storage) 6000 mAh with 8nm Processor | True 48 MP Quad Camera | 90Hz Refresh Rate₹ 9499₹ 12999Buy On
- 10% OFF
Redmi Note 10 Pro (Dark Night, 6GB RAM, 128GB Storage) -120hz Super Amoled Display|64MPwith 5mp Super Tele-Macro₹ 17999₹ 19999Buy On
- 18% OFF
Mi 11X 5G (Celestial Silver 6GB RAM 128GB ROM | SD 870 | DisplayMate A+ rated E4 AMOLED | Upto 18 Months No Cost EMI)₹ 27999₹ 33999Buy On
Redmi Note 10T 5G (Mint Green, 4GB RAM, 64GB Storage) | Dual5G | 90Hz Adaptive Refresh Rate | MediaTek Dimensity 700 7nm Processor₹ 14499₹ 18999Buy On
- 29% OFF
Samsung Galaxy M32 5G (Sky Blue, 6GB RAM, 128GB Storage)₹ 16999₹ 23990Buy On
LendingClub's revenue soared 406% year-over-year and massively beat analyst estimates, along with its earnings per share.
Here are the key numbers:
Revenue: $204 million, versus analyst estimates of $129 million.
Earnings per share: $0.09, versus analyst estimates of -$0.40.
LendingClub expects the surprise profit in the second quarter to spill over into the third quarter, as it guides for third quarter net income of $10 million-$15 million.
LendingClub expects $9.8 billion to $10.2 billion of loan originations in its fiscal year of 2021, along with net revenue of $750 million to $780 million. That's higher than its previous revenue guidance of $500 million to $530 million. Analysts were only expecting $583 million in revenue for the year.
Analysts were impressed with the results, with many increasing their price targets on the company. Credit Suisse, which increased its price target to $28 per share but remained Neutral on the company, said interest income from LendingClub Bank could represent the start of an "enhance earnings trajectory for the business."
While shares hit a three-year high on Thursday, surging to $25.56, they were still down 83% from its record high of $146 reached shortly after its IPO in 2014.
- High speed external solid-state drives with 1TB storage
- Adobe Photoshop to get a 'Prepare as NFT' option soon
- WhatsApp's chat migration feature to transfer messages from iOS to Android is coming to Pixel, Android 12 phones
- Axis Bank, Bajaj Finance, Maruti Suzuki and other hot stocks on October 27 as earnings season gathers momentum
- Nykaa’s IPO to open tomorrow — check last date, listing date and more