Author Topic: LC Releases Q318 Earnings  (Read 768 times)

Rob L

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LC Releases Q318 Earnings
« on: November 06, 2018, 06:06:13 PM »
More by accident than plan I noticed LC announced their quarterly results after the market close today. Their stock did rally into the close this afternoon so I guess good things were expected. Now the stock may take off like a rocket tomorrow but I was underwhelmed. I didn't listen to the webcast and haven't heard any opinions of the "professionals" that evaluate these things. So' I'll run through a few things in a stream of contentiousness mode as I read the earnings release.

1)  The first thing I look for in an earnings release is the GAAP and non-GAAP earnings per share (EPS) compared with previous quarter, previous year, company guidance and analyst expectations. I had to look all the way to page 3 to find it. Here it is (I'm unclear if this is GAAP or non-GAAP):

Earnings Per Share (EPS) Basic and diluted EPS attributable to LendingClub was $(0.05) for the third quarter of
2018, compared to basic and diluted EPS attributable to LendingClub of $(0.02) in the same quarter last year and
$(0.14) in the second quarter of 2018
.

2) LC has always (maybe not always) stressed originations growth. I remember all those exponential origination charts (pre-May 2016):

Originations Loan originations in the third quarter of 2018 were $2.9 billion, improving 18% compared to the
same quarter last year and improving 2% sequentially. (From $2,818mm to $2,886mm).

Sarcasm alert; "Wow".

3) What about us little guys; are we still hanging in there?

Well almost but not quite; still 7% of quarterly originations ($198mm vs 194mm).

The report seemed to stress numbers that "but were it only for those legacy issues"...
The legacy issues are real and aren't going away.
Someday LC will receive and pay that bill. Until then one can't pretend they don't exist.
In the interest of full disclosure I'm looking for some of my money back from stock losses in May 2016.

So, I will look at the stock price tomorrow and am not looking for fireworks.
Hopefully for those that own LC I'm wrong. Won't be the first or last time.

Signed,
Clueless in Seattle

Rob L

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Re: LC Releases Q318 Earnings
« Reply #1 on: November 07, 2018, 04:07:14 PM »
And on post mid-term election day LC closed up $0.04 (1.10%) at $3.68 per share on average volume. The S&P 500 closed up 2.11%.
Guess LC's quarterly results were pretty much as expected.