Digital lending platform LendingClub (NYSE: LC) will be announcing earnings results this Monday afternoon. Here’s what to look for.
LendingClub beat analysts’ revenue expectations last quarter, reporting revenues of $266.5 million, up 22.7% year on year. It was a strong quarter for the company, with and full-year EPS guidance beating analysts’ expectations.
Is LendingClub a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting LendingClub’s revenue to grow 14.4% year on year, slowing from the 20.5% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. LendingClub has a history of exceeding Wall Street’s expectations.
Looking at LendingClub’s peers in the consumer finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FirstCash delivered year-on-year revenue growth of 25.7%, beating analysts’ expectations by 4.8%, and Enova reported revenues up 17.4%, topping estimates by 2.8%. FirstCash traded up 3.3% following the results while Enova was down 1.6%.
Read our full analysis of FirstCash’s results here and Enova’s results here.
There has been positive sentiment among investors in the consumer finance segment, with share prices up 13.1% on average over the last month. LendingClub is up 26% during the same time and is heading into earnings with an average analyst price target of $22.50 (compared to the current share price of $17.46).
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