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Mixed Messages From LendingClub Q2 Report, Pacific Crest Remains Neutral

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Pacific Crest maintained its Sector Weight rating on LendingClub Corp (NYSE: 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.

Latest Ratings for LC

DateFirmActionFromTo
Jul 2019MaintainsEqual-Weight
May 2019UpgradesNeutralOutperform
Aug 2018MaintainsNeutralNeutral

View More Analyst Ratings for LC
View the Latest Analyst Ratings

Posted-In: Josh Beck Pacific CrestAnalyst Color Earnings News Analyst Ratings

 

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