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Wednesday, February 19, 2020

Lending Club (LC) reported earnings on Wed 19 Feb 20 (b/o)

 ** charts after earnings **

 
 
 

 
 
 
 
 
 



LendingClub Gives Up On "Fintech" Charter, Pays $185M To Buy Bank Instead
The fintech has long partnered with Utah-based WebBank so that it can offer loans across the country without getting licensed in each state.

 LendingClub announced an agreement Tuesday to buy Radius Bancorp in a deal that will give the San Francisco-based fintech the bank charter it has been seeking.

The stock-and-cash transaction, which is valued at $185 million, represents a landmark for the U.S. online lending industry. LendingClub would become the first company in the sector’s history to purchase a bank.

Boston-based Radius is a $1.4 billion-asset company with a reputation as an innovator in digital banking. LendingClub said in a press release that the acquisition will allow for the creation of a scaled-up, digitally native bank that will enable customers to pay less when borrowing and earn more when saving.

Lending Club beats by $0.04, misses on revs; guides Q1 revs below consensus; guides FY20 revs below consensus
  • Reports Q4 (Dec) earnings of $0.08 per share, $0.04 better than the S&P Capital IQ Consensus of $0.04; revenues rose 3.9% year/year to $188.5 mln vs the $198.84 mln S&P Capital IQ Consensus.
  • Co issues downside guidance for Q1, sees Q1 revs of $170-$180 mln vs. $198.68 mln S&P Capital IQ Consensus. Expects GAAP consolidated Net Income (Loss) and Adjusted Net Income (Loss) both in the range of $(5) mln to $0 mln; and Adjusted EBITDA in the range of $25-$30 mln.
  • Co issues downside guidance for FY20, sees FY20 revs of $790-$820 mln vs. $869.36 mln S&P Capital IQ Consensus. Expects GAAP consolidated Net Income and Adjusted Net Income both in the range of $17-$37 mln; and Adjusted EBITDA in the range of $150-$170 mln.

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