LendingClub (NYSE:LC) stock slid 4.0% in Tuesday after-hours trading after the company indicated that Q1 loan originations could fall short of the Wall Street consensus. Meanwhile Q4 earnings beat the average analyst estimate as its loan origination increased from Q3 and its provision for credit losses declined.
The online lending platform expects Q1 loan originations of $1.5B-$1.7B vs. the Visible Alpha consensus of $1.62B and $1.6B in Q4. Preprovision net revenue for the quarter is expected to be $30M-$40M, down from $41.9M reported in Q4 2023.
Q4 GAAP EPS of $0.09, topping the average analyst estimate of $0.01, rose from $0.05 in Q3 2023 and declined from $0.19 in Q4 2022, which excluded an income tax benefit. Total net revenue of $185.6M, exceeding the $182.4M consensus, slipped from $200.8M in the prior quarter and $262.7M a year ago.
Total loan originations rose to $1.6B from $1.5B in the prior quarter.
Preprovision net revenue of $41.9M dipped from $72.8M in Q3 and $61.5M in Q4 2022.
Provision for credit losses were $41.9M vs. $64.5M in the prior quarter and $61.5M a year earlier.
Net interest income declined to $131.4M from $137.0M in the previous quarter and $135.2M a year ago. Net interest margin of 6.4% for the quarter compared with 6.9% in Q3 and 7.8% in Q4 2022.
Book value per common share increased to $11.34 from $11.02 in the previous quarter.
Conference call at 5:00 PM ET.
Earlier, LendingClub non-GAAP EPS of $0.09 beats by $0.08, revenue of $185.6M beats by $3.2M