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LendingTree (TREE - Free Report) reported adjusted net income per share of 75 cents in the third quarter, comfortably surpassing the Zacks Consensus Estimate of 69 cents. The reported figure also compares favorably with a loss of 26 cents reported in the prior quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reflect a rise from the prior-year quarter. While the recovery in the company’s consumer segment business buoyed results, elevated expenses were spoilsports. Probably, mirroring this concern, shares of the company declined 3.2% following the release of the third-quarter 2021 results.
The company reported a net loss from continuing operations of $4.4 million or 33 cents per share compared with a net loss of $24.8 million or $1.90 per share in the year-ago quarter.
Revenues Jump, Expenses Rise
Total revenues grew 35% year over year to $297.5 million in the third quarter. The upside primarily stemmed from higher consumer segment revenues. The reported figure also outpaced the Zacks Consensus Estimate of $291.1 million.
Total costs and expenses were $290.5 million, up 22.7% 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 $41 million, up 89% year over year. Variable marketing margin was at $105.9 million, up 36% year over year.
As of Sep 30, 2021, cash and cash equivalents were $215.3 million, up from $169.9 million as of Dec 31, 2020. Long-term debt was $472 million, down from the prior-year end figure of $611.4 million. Total shareholders' equity was $431.1 million, up from $364.8 million as of Dec 31, 2021.
Outlook
Concurrent with the September-end quarter’s results, management issued fourth-quarter 2021 estimates.
Total revenues are estimated to be $255-$270 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $18-$25 million and $81-$91 million, respectively.
Conclusion
LendingTree put up a decent show in the third 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, a rise in expenses is a near-term headwind.
LendingTree, Inc. Price, Consensus and EPS Surprise
BancorpSouth Bank delivered net operating earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents. However, the bottom line compares unfavorably with the 69 cents reported in the year-ago quarter.
Bank of Hawaii Corporation (BOH - Free Report) reported third-quarter 2021 earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.34. Also, the bottom line compares favorably with the 95 cents reported in the prior-year quarter.
New York Community Bancorp, Inc.’s (NYCB - Free Report) third-quarter 2021 earnings per share (non-GAAP) of 31 cents missed the Zacks Consensus Estimate of 33 cents. Nonetheless, the bottom line rose 35% year over year.
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LendingTree (TREE) Stock Slips 3.2% Despite Q3 Earnings Beat
LendingTree (TREE - Free Report) reported adjusted net income per share of 75 cents in the third quarter, comfortably surpassing the Zacks Consensus Estimate of 69 cents. The reported figure also compares favorably with a loss of 26 cents reported in the prior quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reflect a rise from the prior-year quarter. While the recovery in the company’s consumer segment business buoyed results, elevated expenses were spoilsports. Probably, mirroring this concern, shares of the company declined 3.2% following the release of the third-quarter 2021 results.
The company reported a net loss from continuing operations of $4.4 million or 33 cents per share compared with a net loss of $24.8 million or $1.90 per share in the year-ago quarter.
Revenues Jump, Expenses Rise
Total revenues grew 35% year over year to $297.5 million in the third quarter. The upside primarily stemmed from higher consumer segment revenues. The reported figure also outpaced the Zacks Consensus Estimate of $291.1 million.
Total costs and expenses were $290.5 million, up 22.7% 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 $41 million, up 89% year over year. Variable marketing margin was at $105.9 million, up 36% year over year.
As of Sep 30, 2021, cash and cash equivalents were $215.3 million, up from $169.9 million as of Dec 31, 2020. Long-term debt was $472 million, down from the prior-year end figure of $611.4 million. Total shareholders' equity was $431.1 million, up from $364.8 million as of Dec 31, 2021.
Outlook
Concurrent with the September-end quarter’s results, management issued fourth-quarter 2021 estimates.
Total revenues are estimated to be $255-$270 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $18-$25 million and $81-$91 million, respectively.
Conclusion
LendingTree put up a decent show in the third 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, a rise in expenses is a near-term headwind.
LendingTree, Inc. Price, Consensus and EPS Surprise
LendingTree, Inc. price-consensus-eps-surprise-chart | LendingTree, Inc. Quote
Currently, LendingTree carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
BancorpSouth Bank delivered net operating earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents. However, the bottom line compares unfavorably with the 69 cents reported in the year-ago quarter.
Bank of Hawaii Corporation (BOH - Free Report) reported third-quarter 2021 earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.34. Also, the bottom line compares favorably with the 95 cents reported in the prior-year quarter.
New York Community Bancorp, Inc.’s (NYCB - Free Report) third-quarter 2021 earnings per share (non-GAAP) of 31 cents missed the Zacks Consensus Estimate of 33 cents. Nonetheless, the bottom line rose 35% year over year.