By Connor Hart
Shares of Pagaya Technologies tumbled after the company reported a wider-than-expected loss in the third quarter, dragged down by credit losses, which executives expect to be a normal part of business.
The stock fell 35%, to $11.02 on Tuesday. Shares are down 34% since the beginning of the year.
The financial technology company before the bell said its net loss widened to $67.5 million, or 93 cents a share, from $21.8 million, or 36 cents a share, a year earlier. Analysts surveyed by FactSet were expecting a loss of $14 million, or 19 cents a share.
The company's bottom line was hurt by non-cash items, such as fair-value adjustments and share-based compensation expenses. Chief Financial Officer Evangelos Perros said on a call with analysts that the company, as a lending business, expects credit losses to be a normal part of business going forward. However, he added that next year the company projects a higher top line will offset losses, resulting in GAAP profitability.
Adjusted per-share earnings were 44 cents, beating the 26 cents that analysts were looking for, according to FactSet.
Revenue rose 21% to $257.2 million and came in ahead of the $253.3 million that analysts polled by FactSet had forecast.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 12, 2024 13:16 ET (18:16 GMT)
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