LC Earnings Prediction
The chart below shows how LC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LC sees a -3.08% change in stock price 10 days leading up to the earnings, and a -2.08% change 10 days following the report. On the earnings day itself, the stock moves by -0.87%. This data can give you a slight idea of what to expect for the next quarter's release.
LC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
315.41M
20.18%
4.44%
Gross Margin
--
--
--
Operating Margin
3.52%
-32.44%
-40.94%
Net Margin
3.08%
-20.41%
-35.70%
EPS
0.08
-11.11%
-38.46%
No Data Available
LC Earnings Analysis
LendingClub Corp Corporation (LC.N) Earnings Conference Call
Positive
Originations Growth Surge: Originations increased by 13% year on year, totaling over $1.8 billion in Q4 2024, driven by product innovation and marketing efficiency.
PPNR Growth Exceeds Guidance: Pre-provision net revenue (PPNR) rose by 34% to $74 million, exceeding guidance and reflecting strong execution and improved loan sale pricing.
Record High Revenue Growth: Total net revenue reached a record high of $217 million, up 17% from the previous year, benefiting from a $400 million loan sale and favorable market conditions.
Deposit Base Expansion: The deposit base grew by 24%, fueled by the successful launch of the LevelUp Savings product, which attracted $1.2 billion in total deposits since its introduction.
Loan Sales Price Increase: Loan sales prices improved for four consecutive quarters, increasing by 170 basis points year on year, supported by growing demand from banks and private credit investors.
Negative
Credit Loss Provision Increase: Provision for credit losses increased to $63,000,000 in Q4 2024, up from $42,000,000 in the same quarter last year, indicating a significant rise in expected credit losses.
Quarterly Net Income Decline: Net income for the quarter was only $9,700,000, which includes a $3,200,000 post-tax non-cash software impairment, reflecting a decline in profitability compared to previous periods.
Rising Non-Interest Expenses: Non-interest expenses rose to $143,000,000, primarily due to a $4,400,000 pre-tax impairment of internally developed software, indicating increased operational costs.
Net Interest Margin Decline: Net interest margin decreased slightly to 5.42%, suggesting potential pressure on profitability as funding costs remain a concern amid changing interest rates.
Q1 2025 PPNR Guidance: The guidance for Q1 2025 anticipates PPNR in the range of $60,000,000 to $70,000,000, which is below the consensus estimate of $73,000,000, indicating potential challenges in maintaining revenue growth.
LC FAQs
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LC Earning Call Sentiment
Earnings call transcript: LendingClub Q4 2024 misses EPS, stock drops 13%
LC.N
-4.3%Positive
The earnings call shows strong financial performance with revenue and net income growth, improved loan sales prices, and increased deposit base. Optimistic future guidance, including a significant increase in originations and ROTCE, suggests confidence in continued growth. Despite concerns about flat Q1 guidance and competitive market dynamics, management's strategy to expand marketing and lower deposit costs is promising. The Q&A revealed some uncertainties, but the overall sentiment is positive, with potential catalysts like investment grade rating and rebranding. The lack of market cap data suggests a moderate reaction, leading to a 'Positive' rating.
