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Lending Tree (TREE) Stock Dips Despite Q1 Earnings Beat
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Lending Tree, Inc. (TREE - Free Report) reported an adjusted net income per share of 25 cents in the first quarter of 2023, down 46% year over year. The Zacks Consensus Estimate was pegged at a loss of 7 cents.
The stock lost 25.1% following the release of the results, reflecting a bearish reaction by investors on the year-over-year decline in revenues and earnings. Nonetheless, TREE’s results were aided by lower costs.
LendingTree reported a net income of $13.5 million against a loss of $10.8 million in the year-ago quarter.
Revenues Decline, Expenses Fall
Total revenues were down 29% year over year to $200.5 million in the first quarter. The downside primarily stemmed from a decline in the Home, Consumer and Insurance segments' revenues. Also, the reported figure missed the Zacks Consensus Estimate of $207.4 million.
The total cost of revenues was $13.7 million, down 11.6% from the prior-year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $14.5 million, down 51% year over year. The variable marketing margin was at $76.1 million, down 19%.
As of Mar 31, 2023, cash and cash equivalents were $150.1 million compared with $298.8 million as of 2022 end. Long-term debt was $623.3 million compared with $813.5 million as of 2022 end.
Outlook
For the second quarter of 2023, total revenues are estimated between $190 million and $200 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $17-$22 million and $75-$80 million, respectively.
For 2023, total revenues are estimated between $760 million and $800 million. Adjusted EBITDA is anticipated to be $80-$90 million. The variable marketing margin is expected between $290 million and $310 million.
Conclusion
The company’s total revenues were affected mainly by the decline in Home and Consumer segment revenues. Nonetheless, TREE has been focused on maintaining the balance between its near-term profitability and aligning the same for long-term success.
LendingTree, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
BLK's results benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were major headwinds.
Invesco’s (IVZ - Free Report) first-quarter 2023 adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 32.1% from the prior-year quarter. Our estimate for earnings was 31 cents.
Results benefited from a decline in operating expenses. However, lower AUM balance and long-term outflows hurt IVZ’s revenues.
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Lending Tree (TREE) Stock Dips Despite Q1 Earnings Beat
Lending Tree, Inc. (TREE - Free Report) reported an adjusted net income per share of 25 cents in the first quarter of 2023, down 46% year over year. The Zacks Consensus Estimate was pegged at a loss of 7 cents.
The stock lost 25.1% following the release of the results, reflecting a bearish reaction by investors on the year-over-year decline in revenues and earnings. Nonetheless, TREE’s results were aided by lower costs.
LendingTree reported a net income of $13.5 million against a loss of $10.8 million in the year-ago quarter.
Revenues Decline, Expenses Fall
Total revenues were down 29% year over year to $200.5 million in the first quarter. The downside primarily stemmed from a decline in the Home, Consumer and Insurance segments' revenues. Also, the reported figure missed the Zacks Consensus Estimate of $207.4 million.
The total cost of revenues was $13.7 million, down 11.6% from the prior-year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $14.5 million, down 51% year over year. The variable marketing margin was at $76.1 million, down 19%.
As of Mar 31, 2023, cash and cash equivalents were $150.1 million compared with $298.8 million as of 2022 end. Long-term debt was $623.3 million compared with $813.5 million as of 2022 end.
Outlook
For the second quarter of 2023, total revenues are estimated between $190 million and $200 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $17-$22 million and $75-$80 million, respectively.
For 2023, total revenues are estimated between $760 million and $800 million. Adjusted EBITDA is anticipated to be $80-$90 million. The variable marketing margin is expected between $290 million and $310 million.
Conclusion
The company’s total revenues were affected mainly by the decline in Home and Consumer segment revenues. Nonetheless, TREE has been focused on maintaining the balance between its near-term profitability and aligning the same 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
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
BLK's results benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were major headwinds.
Invesco’s (IVZ - Free Report) first-quarter 2023 adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 32.1% from the prior-year quarter. Our estimate for earnings was 31 cents.
Results benefited from a decline in operating expenses. However, lower AUM balance and long-term outflows hurt IVZ’s revenues.