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What's in the Cards for LendingClub (LC) in Q4 Earnings?

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LendingClub Corporation (LC - Free Report) is slated to announce fourth-quarter and 2021 results on Jan 26, after market close. Its earnings and revenues in the to-be-reported quarter are expected to have witnessed a year-over-year increase.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were aided by a rise in total net revenues.

LendingClub has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three and matched in one of the trailing four quarters, with an average surprise of 186%.

LendingClub Corporation Price and EPS Surprise

 

LendingClub Corporation Price and EPS Surprise

LendingClub Corporation price-eps-surprise | LendingClub Corporation Quote

The Zacks Consensus Estimate for the company’s fourth-quarter earnings is pegged at 21 cents per share, indicating a significant rise from the prior-year quarter’s reported number. The consensus estimate has been unchanged over the past 30 days.

The consensus estimate for sales of $247.7 million suggests an increase of 226.3% from the previous year.

Other Key Estimates for Q4

The Zacks Consensus Estimate for loan originations is pegged at $3 billion, which indicates a decline of 3.4% from the previous quarter’s reported number.
Due to an anticipated fall in total loan originations, origination fees are expected to have been negatively impacted in the quarter. The consensus estimate for the same of $126 million suggests a decline of 2.3% sequentially.

Likewise, the consensus estimate for gain on sales of loans of $8.17 million indicates a fall of 62.7% from the previous quarter’s reported figure.

Nevertheless, the consensus estimate for servicing fees is $22 million, suggesting a rise of 5.7% sequentially. Thus, due to an expected fall in most components of marketplace revenues, total marketplace revenues are anticipated to have been negatively impacted in the fourth quarter.

The consensus estimate for other non-interest income is pegged at $5.44 million, reflecting a decline of 13.9% sequentially.

Management Projections for Q4

The company expects loan originations of $2.8-$3 billion for the fourth quarter.

Total quarterly revenues are projected at $240-$250 million.

Consolidated net income is expected to be $20-$25 million.

Earnings Whispers

According to our quantitative model, the chances of LendingClub beating the Zacks Consensus Estimate in the fourth quarter are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — which is required to increase the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: The Earnings ESP for LendingClub is +7.81%.

Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

A few other finance stocks, which you may want to consider as these too have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Prosperity Bancshares (PB - Free Report) , Ameriprise Financial, Inc. (AMP - Free Report)   and Ares Capital Corporation (ARCC - Free Report) .

Prosperity Bancshares is slated to report quarterly earnings on Jan 26. PB, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +0.55%.

Ameriprise Financial is also slated to report quarterly earnings on Jan 26. AMP, which carries a Zacks Rank #2 (Buy) at present, has an Earnings ESP of +0.69%.

Ares Capital is slated to report quarterly results on Feb 9. ARCC currently has an Earnings ESP of +11.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.