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LendingClub (LC) Reports Q3 Loss as Expenses Surge

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Have you been eager to see how LendingClub Corporation (LC - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco-based online market place for connecting borrowers and investors company’s earnings release this morning:

Loss

LendingClub reported a loss of 9 cent per share for the third quarter. On an adjusted basis, the company reported a loss of 4 cents. The Zacks Consensus Estimate was a loss of 10 cents.

Rise in operating expenses were largely responsible for loss.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for LendingClub depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.

However, LendingClub does not have a decent earnings surprise history. Overall, the company missed the Zacks Consensus Estimate by an average of 20% in the trailing four quarters.

LENDINGCLUB CP Price and EPS Surprise

 

LENDINGCLUB CP Price and EPS Surprise | LENDINGCLUB CP Quote

Revenue Came In Better Than Expected

LendingClub posted revenues of $112.6 million, which outpaced the Zacks Consensus Estimate of $100.78 million.

Key Statistics

 

  • Adjusted EBITDA was negative $11.1 million
  • Loan originations were $1.97 billion as of Sep 30, 2016
  • As of Sep 30, 2016, cash, cash equivalents and securities available for sale were $800 million


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for LendingClub. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change as it all depends on what sense the just-released report makes to the analysts.
    
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