We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lending Tree (TREE) Q2 Earnings Beat, Stock Dips on Weak View
Read MoreHide Full Article
Lending Tree, Inc. (TREE - Free Report) reported adjusted net income per share of 58 cents in second-quarter 2022. The Zacks Consensus Estimate was pegged at a loss of 4 cents. The reported figure compares unfavorably with an income of 76 cents reported in the prior-year quarter.
Amid the uncertain macro-economic environment, the company trimmed its 2022 guidance. Likely reflecting this, the stock lost 6.3% following the release of the results. Second-quarter results of Lending Tree were adversely impacted by a decline in total revenues and high expenses. Nonetheless, cash and cash equivalents improved while continued recovery in TREE’s consumer segment business buoyed the results.
LendingTree reported a net loss from continuing operations of $8 million or 63 cents per share against net income of $9.8 million or 71 cents per share reported in the year-ago quarter.
Revenues Decline, Expenses Rise
Total revenues were down 3% year over year to $261.9 million in the second quarter. The downside primarily stemmed from a decline in Home and Insurance segment revenues. Nonetheless, the reported figure marginally surpassed the Zacks Consensus Estimate by 0.10%.
Total costs and expenses were $265.9 million, up 2.4% from the prior-year quarter. The rise chiefly resulted from a rise in general and administrative expenses and an increase in product development.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $28.5 million, down 25% year over year. The variable marketing margin was at $90.8 million, down 8%.
As of Jun 30, 2022, cash and cash equivalents were $279.1 million, up from $251.2 million as of Dec 31, 2021. Long-term debt was $813 million, up from the prior-quarter figure of $565 million. Total shareholders' equity, as of Jun 30, 2022, was around $350.5 million, up from $340.8 million sequentially.
Outlook
For third-quarter 2022, total revenues are estimated to be $235-$245 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $2-$8 million and $64-$74 million, respectively.
For 2022, total revenues are estimated to be $985-$1,015 million, indicating a year-over-year decline of 8-10%. Adjusted EBITDA is anticipated to be $75-$85 million, suggesting a 37-44% fall year over year. The variable marketing margin is expected to be $325-$345 million.
Conclusion
The company’s total revenues were affected mainly by the decline in home segment revenues. It has also reduced the full-year guidance due to an uncertain environment. Nonetheless, the company remained focused on maintaining the balance between near-term profitability and aligning it for long-term success.
LendingTree, Inc. Price, Consensus and EPS Surprise
Washington Federal’s (WAFD - Free Report) third-quarter fiscal 2022 (ended Jun 30) earnings of 91 cents per share surpassed the Zacks Consensus Estimate of 79 cents. The figure reflects a year-over-year jump of 49.2%.
Results were primarily aided by higher revenues and improving loan balances. However, an increase in expenses and higher provisions were the undermining factors for WAFD.
Commerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2022 earnings of 96 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line, however, plunged 27.3% from the prior-year quarter.
Results benefited from an improvement in net interest income, a rise in loan balance and a modest increase in non-interest income. However, an increase in non-interest expenses and higher provisions were the major headwinds for CBSH.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lending Tree (TREE) Q2 Earnings Beat, Stock Dips on Weak View
Lending Tree, Inc. (TREE - Free Report) reported adjusted net income per share of 58 cents in second-quarter 2022. The Zacks Consensus Estimate was pegged at a loss of 4 cents. The reported figure compares unfavorably with an income of 76 cents reported in the prior-year quarter.
Amid the uncertain macro-economic environment, the company trimmed its 2022 guidance. Likely reflecting this, the stock lost 6.3% following the release of the results. Second-quarter results of Lending Tree were adversely impacted by a decline in total revenues and high expenses. Nonetheless, cash and cash equivalents improved while continued recovery in TREE’s consumer segment business buoyed the results.
LendingTree reported a net loss from continuing operations of $8 million or 63 cents per share against net income of $9.8 million or 71 cents per share reported in the year-ago quarter.
Revenues Decline, Expenses Rise
Total revenues were down 3% year over year to $261.9 million in the second quarter. The downside primarily stemmed from a decline in Home and Insurance segment revenues. Nonetheless, the reported figure marginally surpassed the Zacks Consensus Estimate by 0.10%.
Total costs and expenses were $265.9 million, up 2.4% from the prior-year quarter. The rise chiefly resulted from a rise in general and administrative expenses and an increase in product development.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $28.5 million, down 25% year over year. The variable marketing margin was at $90.8 million, down 8%.
As of Jun 30, 2022, cash and cash equivalents were $279.1 million, up from $251.2 million as of Dec 31, 2021. Long-term debt was $813 million, up from the prior-quarter figure of $565 million. Total shareholders' equity, as of Jun 30, 2022, was around $350.5 million, up from $340.8 million sequentially.
Outlook
For third-quarter 2022, total revenues are estimated to be $235-$245 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $2-$8 million and $64-$74 million, respectively.
For 2022, total revenues are estimated to be $985-$1,015 million, indicating a year-over-year decline of 8-10%. Adjusted EBITDA is anticipated to be $75-$85 million, suggesting a 37-44% fall year over year. The variable marketing margin is expected to be $325-$345 million.
Conclusion
The company’s total revenues were affected mainly by the decline in home segment revenues. It has also reduced the full-year guidance due to an uncertain environment. Nonetheless, the company remained focused on maintaining the balance between near-term profitability and aligning it for long-term success.
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
Washington Federal’s (WAFD - Free Report) third-quarter fiscal 2022 (ended Jun 30) earnings of 91 cents per share surpassed the Zacks Consensus Estimate of 79 cents. The figure reflects a year-over-year jump of 49.2%.
Results were primarily aided by higher revenues and improving loan balances. However, an increase in expenses and higher provisions were the undermining factors for WAFD.
Commerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2022 earnings of 96 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line, however, plunged 27.3% from the prior-year quarter.
Results benefited from an improvement in net interest income, a rise in loan balance and a modest increase in non-interest income. However, an increase in non-interest expenses and higher provisions were the major headwinds for CBSH.