LendingClub Corp. (LC) experienced a significant after-hours plunge of over 20% on Tuesday, following the release of its fourth-quarter earnings report. The fintech company reported disappointing earnings results, missing analysts' consensus estimates for earnings per share (EPS).
According to the earnings report, LendingClub posted a net income of $9.7 million, or $0.08 per share, in the fourth quarter of 2024. This fell short of analysts' expectations of $0.09 per share, representing an 11.11% miss on EPS. While the company's quarterly revenue of $217.2 million exceeded estimates of $206.43 million, the miss on earnings appears to have been the primary driver for the stock's sharp decline.
In a statement, LendingClub CEO Scott Sanborn acknowledged the strong execution in 2024, with growth in loan originations, continued credit outperformance, and successful new product launches. However, the company's failure to meet earnings expectations raised concerns among investors about its profitability and future growth prospects.
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