Why LendingClub Stock Took A Hit After-Hours

LendingClub Corp LC shares are trading lower in Tuesday's after-hours session on the heels of the company's fourth-quarter earnings results.

What To Know: LendingClub reported quarterly earnings of nine cents per share, beating analyst expectations of two cents by 350%.

Quarterly sales clocked in at $185.60 million which surpassed the analyst consensus estimate of $182.36 million, a 29.35% decrease over sales of $262.71 million in the same period last year.

The company also reported loan originations of $1.6 billion, compared to $1.5 billion in the previous quarter, citing increased purchases by loan investors as the reason behind the growth.

Deposits rose 4% to $7.3 billion, compared to third-quarter deposits of $7.0 billion.

Additionally, pre-provision net revenue (PPNR) was $55.6 million compared to $72.8 million in the prior quarter.

LendingClub estimates that first-quarter loan originations will be between $1.5 billion and $1.7 billion while pre-provision net revenue is anticipated to be between $30 million and $40 million.

"Thanks to our differentiated business model, strong execution, data advantage, and ongoing innovation, we have remained one of the few fintechs to sustain GAAP profitability throughout this turbulent macro environment, which positions us well for future acceleration," said Scott Sanborn, LendingClub CEO.

"Since acquiring our bank charter three years ago, we have transformed our financial profile and business — tripling our balance sheet, building tangible book value by approximately 2X, growing deposits by almost 4X, and delivering 12 straight quarters of credit outperformance."

LC Price Action: Shares of LendingClub were down 3.20% at $8.46 in the after-hours session at the time of publication, according to Benzinga Pro.

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Photo: Nattanan Kanchanaprat from Pixabay