LendingClub soars 57% to 3-year high after reporting its most profitable quarter ever (LC)

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Summary List Placement
  • LendingClub soared as much as 57% after second quarter earnings results revealed its most profitable quarter ever.
  • The personal loan provider saw revenue soar 406% to $204 million, easily beating analyst estimates.
  • Even with shares hitting a three-year high, LendingClub is still down 83% from its record 2014 high.
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Shares of LendingClub soared as much as 57% on Thursday after the personal loan provider reported second quarter earnings that revealed its most profitable quarter ever.

LendingClub's revenue soared 406% year-over-year and massively beat analyst estimates, along with its earnings per share.

Here are the key numbers:

Revenue: $204 million, versus analyst estimates of $129 million.
Earnings per share: $0.09, versus analyst estimates of -$0.40.

LendingClub expects the surprise profit in the second quarter to spill over into the third quarter, as it guides for third quarter net income of $10 million-$15 million. 

LendingClub expects $9.8 billion to $10.2 billion of loan originations in its fiscal year of 2021, along with net revenue of $750 million to $780 million. That's higher than its previous revenue guidance of $500 million to $530 million. Analysts were only expecting $583 million in revenue for the year.

Analysts were impressed with the results, with many increasing their price targets on the company. Credit Suisse, which increased its price target to $28 per share but remained Neutral on the company, said interest income from LendingClub Bank could represent the start of an "enhance earnings trajectory for the business."

While shares hit a three-year high on Thursday, surging to $25.56, they were still down 83% from its record high of $146 reached shortly after its IPO in 2014.

LendingClub stock chartMarkets Insider

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