Mixed Messages From LendingClub Q2 Report, Pacific Crest Remains Neutral

Pacific Crest maintained its Sector Weight rating on LendingClub Corp LC following the company's mixed results.

Lending Club reported second quarter loss of $0.09 a share versus estimates for a loss of $0.02. Sales were $102.4 million versus estimates of $100.51 million. The company also announced CFO Carrie Dolan will step down and named Bradley Coleman as interim CFO.

The result also saw the EBITDA miss versus consensus of about $18 million due to investor incentives, audit, legal and severance fees.

"A number of moving parts tied to funding, incentives, S&M efficiency and a management transition cloud the path to positive EBITDA, keeping us neutral on the shares," analyst Josh Beck wrote in a note.

Beck said a wild card remains the potential for a potentially more-committed funding source, which would provide more stability but may carry lower unit economics.

Beck cut 2016 EBITDA estimate to ($28 million) from $75 million and revenue forecast to $476.2 million from $499.2 million.

The analyst expects 9.6 percent revenue CAGR through 2017, but projects EBITDA margin to decline 10 percent to -6.0 percent in 2017.

At time of writing, shares of LendingClub fell 3.97 percent to $4.60.