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LendingTree Surpasses Q3 Earnings Estimates, Raises 2024 View

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LendingTree, Inc.’s (TREE - Free Report) third-quarter 2024 adjusted net income per share of 80 cents topped the Zacks Consensus Estimate of 67 cents. The figure compares favorably with the 61 cents reported in the prior-year quarter.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

The results were driven by increased earnings before interest, taxes, depreciation and amortization (EBITDA). A rise in revenues acted as another tailwind. However, an increase in total cost was a spoilsport.

The results exclude certain non-recurring items. After considering these, TREE reported a GAAP net loss of $58 million compared with a loss of $148.5 million in the year-ago quarter.

TREE’s Revenues, Variable Marketing Margin Increase

Total revenues grew 68% year over year to $260.8 million. The rise stemmed from a substantial increase in the Insurance segment's revenues. Also, the reported figure surpassed the Zacks Consensus Estimate by 6.9%.

The total cost of revenues was $9.4 million, up 23.8% from the prior-year quarter.

Adjusted EBITDA totaled $26.9 million, up 23% year over year. The variable marketing margin was $77.2 million, up 14% year over year.

As of Sept. 30, 2024, cash and cash equivalents were $96.8 million compared with $66.8 billion as of June 30, 2024. Long-term debt was $346.2 million compared with $467.7 million as of June 30, 2024.

Lending Tree’s Outlook

The company provided the fourth-quarter 2024 outlook and updated its 2024 view.

4Q 2024

For the fourth quarter of 2024, total revenues are estimated between $231 million and $241 million. Adjusted EBITDA and the variable marketing margin are anticipated between $20-$23 million and $69-$74 million, respectively.

2024

For 2024, total revenues are projected between $870 million and $880 million versus the prior mentioned $830-$870 million. Adjusted EBITDA is projected to be $92-$95 million versus the $85-$95 million stated previously. The variable marketing margin is expected to be $287-$292 million compared with the $280-$300 million mentioned earlier.

Our View on Lending Tree

TREE’s inorganic growth moves have strengthened its online lending platform. Its third-quarter results were boosted by strong growth in the Insurance segment revenues. The company’s efforts to boost revenues by diversifying its non-mortgage product offerings will support top-line growth in the future.

LendingTree, Inc. Price, Consensus and EPS Surprise

 

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

WaFd, Inc.’s (WAFD - Free Report) fourth-quarter fiscal 2024 (ended Sept. 30) earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 68 cents. Also, the bottom line declined 1.4% year over year.

The results reflected a rise in NII and non-interest income, driven by the acquisition of Luther Burbank Corporation in February. This supported WAFD’s top line. Higher loan balances and nil provisions were other positives. However, a rise in expenses acted as a spoilsport.

Hancock Whitney Corp.’s (HWC - Free Report) third-quarter 2024 earnings per share of $1.33 beat the Zacks Consensus Estimate of $1.31. The bottom line compared favorably with the $1.12 per share registered in the year-ago quarter.

HWC’s results were aided by an increase in non-interest income and NII. Lower expenses and provisions were positives. However, the decline in total loans and deposits affected the results to some extent.


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