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LendingTree (TREE) Stock Up 2% as Q2 Earnings Beat Estimates
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Shares of LendingTree (TREE - Free Report) appreciated 2%, following the release of second-quarter 2021 results. The company reported adjusted net income per share of 76 cents in the quarter, surpassing the Zacks Consensus Estimate of 19 cents. The reported figure was 65% higher than 46 cents reported in the prior-year quarter.
While the recovery in the company’s consumer segment business buoyed results, elevated expenses were spoilsports. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reflect a rise from the prior-year quarter.
The company reported GAAP net income of $9.8 million or 71 cents per share against a net loss of $8.6 million or 66 cents in the year-ago quarter.
Revenues Jump, Expenses Rise
Total revenues grew 47% year over year to $270 million in the second quarter. The upside primarily stemmed from higher consumer revenues. The reported figure, however, missed the Zacks Consensus Estimate of $271 million.
Total costs and expenses were $259.5 million, up 35% from the prior-year quarter. The upswing chiefly resulted from a rise in selling and marketing expenses, general and administrative expenses, cost of product development and depreciation costs.
Adjusted EBITDA totaled $38.2 million, up 24% year over year. Variable marketing margin came in at $98.4 million, up 19% year over year.
As of Jun 30, 2021, cash and cash equivalents were $203.2 million, up from $169.9 million as of Dec 31, 2020. Long-term debt was $465.9 million, down from the prior-year end of $611.4 million. Total shareholders' equity was $420.4 million, up from $364.8 million as of Dec 31, 2021.
Outlook
Concurrent with the June-end quarter results, management issued third-quarter 2021 estimates.
Total revenues are estimated to be $285-$298 million. Adjusted EBITDA and variable marketing margin are anticipated to be $27-$31 million and $86-$92 million, respectively.
Conclusion
LendingTree put up a decent show in the second quarter in terms of earnings. Its declining dependence on mortgage-related sources of revenues and various acquisitions over the past several years is likely to continue aiding financials and help diversify revenues.
However, unsustainable capital-deployment activities and a rise in expenses are near-term headwinds.
LendingTree, Inc. Price, Consensus and EPS Surprise
UMB Financial’s (UMBF - Free Report) operating earnings per share of $1.80 per share outpaced the Zacks Consensus Estimate of $1.74. The bottom line also compared favorably with the prior-year quarter’s $1.33.
Annaly Capital Management, Inc. (NLY - Free Report) reported second-quarter 2021 earnings available for distribution (EAD), formerly known as core earnings per share, excluding premium amortization adjustment (“PAA”), of 30 cents that surpassed the Zacks Consensus Estimate of 27 cents. The figure compared favorably with the year-ago quarter’s 27 cents.
Huntington BancsharesIncorporated (HBAN - Free Report) reported second-quarter 2021 adjusted earnings per share of 35 cents, outpacing the Zacks Consensus Estimate of 32 cents. An increase in revenues, aided by high net interest and non-interest income, supported the results.
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LendingTree (TREE) Stock Up 2% as Q2 Earnings Beat Estimates
Shares of LendingTree (TREE - Free Report) appreciated 2%, following the release of second-quarter 2021 results. The company reported adjusted net income per share of 76 cents in the quarter, surpassing the Zacks Consensus Estimate of 19 cents. The reported figure was 65% higher than 46 cents reported in the prior-year quarter.
While the recovery in the company’s consumer segment business buoyed results, elevated expenses were spoilsports. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reflect a rise from the prior-year quarter.
The company reported GAAP net income of $9.8 million or 71 cents per share against a net loss of $8.6 million or 66 cents in the year-ago quarter.
Revenues Jump, Expenses Rise
Total revenues grew 47% year over year to $270 million in the second quarter. The upside primarily stemmed from higher consumer revenues. The reported figure, however, missed the Zacks Consensus Estimate of $271 million.
Total costs and expenses were $259.5 million, up 35% from the prior-year quarter. The upswing chiefly resulted from a rise in selling and marketing expenses, general and administrative expenses, cost of product development and depreciation costs.
Adjusted EBITDA totaled $38.2 million, up 24% year over year. Variable marketing margin came in at $98.4 million, up 19% year over year.
As of Jun 30, 2021, cash and cash equivalents were $203.2 million, up from $169.9 million as of Dec 31, 2020. Long-term debt was $465.9 million, down from the prior-year end of $611.4 million. Total shareholders' equity was $420.4 million, up from $364.8 million as of Dec 31, 2021.
Outlook
Concurrent with the June-end quarter results, management issued third-quarter 2021 estimates.
Total revenues are estimated to be $285-$298 million. Adjusted EBITDA and variable marketing margin are anticipated to be $27-$31 million and $86-$92 million, respectively.
Conclusion
LendingTree put up a decent show in the second quarter in terms of earnings. Its declining dependence on mortgage-related sources of revenues and various acquisitions over the past several years is likely to continue aiding financials and help diversify revenues.
However, unsustainable capital-deployment activities and a rise in expenses are near-term headwinds.
LendingTree, Inc. Price, Consensus and EPS Surprise
LendingTree, Inc. price-consensus-eps-surprise-chart | LendingTree, Inc. Quote
Currently, LendingTree carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
UMB Financial’s (UMBF - Free Report) operating earnings per share of $1.80 per share outpaced the Zacks Consensus Estimate of $1.74. The bottom line also compared favorably with the prior-year quarter’s $1.33.
Annaly Capital Management, Inc. (NLY - Free Report) reported second-quarter 2021 earnings available for distribution (EAD), formerly known as core earnings per share, excluding premium amortization adjustment (“PAA”), of 30 cents that surpassed the Zacks Consensus Estimate of 27 cents. The figure compared favorably with the year-ago quarter’s 27 cents.
Huntington Bancshares Incorporated (HBAN - Free Report) reported second-quarter 2021 adjusted earnings per share of 35 cents, outpacing the Zacks Consensus Estimate of 32 cents. An increase in revenues, aided by high net interest and non-interest income, supported the results.