Digital lending platform LendingClub (NYSE: LC) will be reporting results this Wednesday after market close. Here’s what investors should know.
LendingClub beat analysts’ revenue expectations by 9.2% last quarter, reporting revenues of $248.4 million, up 32.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is LendingClub a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting LendingClub’s revenue to grow 26.9% year on year to $256.3 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LendingClub has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.5% on average.
Looking at LendingClub’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Synchrony Financial posted flat year-on-year revenue, beating analysts’ expectations by 0.9%, and Ally Financial reported revenues up 1.5%, topping estimates by 2.6%. Synchrony Financial traded down 3.5% following the results while Ally Financial was up 5.3%.
Read our full analysis of Synchrony Financial’s results here and Ally Financial’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the consumer finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. LendingClub is down 7.4% during the same time and is heading into earnings with an average analyst price target of $18.65 (compared to the current share price of $16.36).
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