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LendingTree (TREE) Updates Q4 Guidance on Stellar Performance

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Ahead of the fourth-quarter and full-year 2020 results scheduled to for a Feb 25 release, LendingTree, Inc. (TREE - Free Report) has issued its fourth-quarter 2020 guidance.

For the December-end quarter, the company projects revenues in the $220-$222 million range, up from the prior guidance of $200-$215 million. Further, variable marketing margin is likely to be in the range of $80-$82 million compared with the prior estimate of $72-$78 million. Additionally, the company expects adjusted EBITDA in the $24-$26 million band, up from the prior expectation of $13-$18 million.

"Due to substantial outperformance relative to our prior outlook, and in our ongoing effort to provide increased transparency for investors in these uncertain times, we are updating our expectations for LendingTree's fourth quarter 2020 results as we continue to work through our year-end close process," said Doug Lebda, chairman and CEO. "I am incredibly proud of how our company has navigated this challenging environment and continued to execute and innovate to propel our business forward."

Specifically, the outperformance shown by the three segments during the fourth quarter led to the revised guidance. Notably, per J.D. Moriarty, chief financial officer (CFO), the Home segment recorded 30% year-over-year growth, while the Insurance segment outperformed with a 20% rise in revenues. Also, the Consumer segment, hardly hit by coronavirus crisis has come up with sustainable recovery aided by the credit card business, personal loans and small business.

LendingTree’s expansion strategies are anticipated to further boost its top line. In addition, management’s focus on expanding product offerings has aided the company’s top line considerably. However, the bank has been witnessing rising costs for the enhancement of products.

Shares of the company have gained 2.6% in the past six months compared with 30.8% growth registered by the industry.



Currently, LendingTree carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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