LendingClub Corp (NYSE: LC) is having an incredibly strong start to the trading session this morning after announcing its earnings in the after-hours last night. Of course, the earnings beat expectations, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- What we saw from earnings;
- what we’re seeing from the stock as a result;
- and what we’ll be watching for with regard to LC ahead.
LC Heads Up On Earnings
As mentioned above, LendingClub is having an overwhelmingly strong start to the trading session this morning after reporting its earnings after-hours yesterday. Her’es what we saw from the report:
- Earnings Per Share – In terms of earnings per share, LC did overwhelmingly well. During the quarter, the company reported a net loss of $31.2 million. That works out to a loss of $0.07 per share. When adjusted for stock option expense and non-recurring costs, the loss came to $0.01 per share, in line with expectations.
- Revenue – In terms of revenue, the company slightly missed the mark. During the quarter, analysts were calling for revenue in the amount of $152.2 million. However, revenue actually was reported at $151.7 million.
- Guidance – In terms of guidance, the news proved to be overwhelmingly positive with the company guiding for strong quarter over quarter and year over year growth. In terms of the current quarter, LC is expecting that revenue will come in between $162 million and $172 million. For the full year, the company expects that revenue will come in between $680 million and $705 million.
In a statement, Scott Sanborn, CEO at LC, had the following to offer:
We feel good about how we’ve kicked off the year and the fundamentals of our business continue to be strong. Our strategic initiatives are working on both sides of our marketplace and we’ll keep innovating to help more Americans on their journey to financial success.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. While revenue was a slight miss, earnings came in line with expectations. This, combined with strong guidance, has excited investors, sending the stock screaming for the top. At the moment (10:15), LC is trading at $3.38 per share after a gain of $0.57 per share or 20.04% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on LC. In particular, we’re interested in following the story surrounding the company’s continued growth as this year is set to be a great one if the company meets guidance. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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