LendingTree Stock Climbs On Better-Than-Expected Q1 Results, Guidance Above Estimates

LendingTree, Inc. TREE shares are trading higher Tuesday after the company posted better-than-expected first-quarter financial results and issued strong guidance. Here's a look at the details. 

The Details:

LendingTree reported quarterly earnings of 70 cents per share which beat the analyst consensus estimate of 37 cents by 89.19% and represents a 180% increase over earnings from the same period last year. 

Quarterly sales clocked in at $167.8 million which beat the analyst consensus estimate of $162.773 million by 3.09%. 

Home segment revenue of $30.4 million decreased 30% over the first quarter 2023 and produced segment profit of $9.6 million. Insurance segment revenue of $85.9 million increased 11% over the first quarter 2023 and translated into segment profit of $33.4 million, up 11% over the same period.

“We are happy to report quarterly AEBITDA grew 49% YoY, exceeding the high end of our forecast.  Our Insurance segment produced very strong performance in the first quarter, growing both revenue and segment profit by double-digits as insurance carrier partners steadily increased their budgets with us,” said Doug Lebda, CEO of LendingTree.  

“At the same time, a stable lending environment is benefiting Consumer segment revenue, allowing us to lean back into our marketing efforts to match more customers with the best financial products in our marketplace.  We believe we are finally through the worst part of the cycle for our company, when all three of our reportable segments were operating at or near trough revenue levels,” Lebda added. 

Outlook: 

LendingTree sees second-quarter revenue in a range of $175 million to $190 million, versus the $168.325 million estimate. The company updated its full-year revenue guidance from between $650 million and $690 million to between $690 million and $720 million, versus the $670.255 million analyst estimate. 

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TREE Price Action: According to Benzinga Pro, LendingTree shares are up 23.1% at $45.97 at the time of publication Tuesday.

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