Digital lending platform LendingClub (NYSE: LC) will be reporting results this Wednesday after market hours. Here’s what investors should know.
LendingClub beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $266.2 million, up 31.9% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Is LendingClub a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting LendingClub’s revenue to grow 20.6% year on year to $261.9 million, improving from the 17% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LendingClub has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.
Looking at LendingClub’s peers in the consumer finance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Sallie Mae delivered year-on-year revenue growth of 16.4%, beating analysts’ expectations by 1%, and Ally Financial reported revenues up 3.7%, topping estimates by 0.9%. Sallie Mae traded up 6.2% following the results while Ally Financial was down 1%.
Read our full analysis of Sallie Mae’s results here and Ally Financial’s results here.
Investors in the consumer finance segment have had steady hands going into earnings, with share prices flat over the last month. LendingClub is up 7.7% during the same time and is heading into earnings with an average analyst price target of $23.82 (compared to the current share price of $21.13).
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