Market Overview

Poor On Deck Guidance Is Concerning P2P Investors: But Does It Matter?

Poor On Deck Guidance Is Concerning P2P Investors: But Does It Matter?

Shares of On Deck Capital Inc (NYSE: ONDK) are collapsing Tuesday following a big Q1 earnings and Q2 guidance miss. On Deck reported Q1 EPS of -$0.18 on revenue of $62.6 million versus consensus expectations of -$0.07 EPS on $69.3 million in revenue. Looking ahead, the company guided for $67-70 million in revenue in Q2, well short of the $78 million analysts were expecting.

On Deck’s big whiff has the stock trading down more than 35 percent on Tuesday, and rival online lenders LendingClub Corp (NYSE: LC) and Lendingtree Inc (NASDAQ: TREE) are also down about 10 percent each following On Deck’s surprisingly weak report.

FBR’s Bob Ramsey views On Deck’s Q1 as cause for a downgrade of the stock from Outperform to Market Perform.

“We like ONDK’s business model, particularly its ability to partner with banks to provide lending as a service, but the near-term volatility in earnings and lack of profitability are concerns,” Ramsey explained.

Related Link: On Deck's Problem Isn't Credit

Q1 marked the first time in the past four quarters that On Deck has missed Wall Street earnings expectations. While LendingTree and Lending Club have also beaten consensus earnings estimates in each of the last three quarters, LendingTree has been the big winner on the market in the past year.

Over the last 12 months, LendingTree is up 49.76 percent, while Lending Club and On Deck are down 59.82 percent and 72.16 percent, respectively.

Disclosure: The author holds no position in the stocks mentioned.

Latest Ratings for ONDK

May 2020Keefe Bruyette & WoodsMaintainsMarket Perform
May 2020UBSMaintainsNeutral
May 2020B. Riley FBRMaintainsNeutral

View More Analyst Ratings for ONDK
View the Latest Analyst Ratings


Related Articles (LC + ONDK)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas News Guidance Short Ideas Analyst Ratings Movers Best of Benzinga

Latest Ratings

JOBAlliance Global PartnersUpgrades2.5
RARECanaccord GenuityMaintains91.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at