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LendingClub Set to Report Q4 Earnings: What's in Store for LC?

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LendingClub Corporation (LC - Free Report) is slated to announce fourth-quarter and full-year 2024 results on Jan. 28, after market close. Its quarterly earnings and revenues are expected to have witnessed a year-over-year increase.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

LendingClub’s third-quarter 2024 earnings surpassed the Zacks Consensus Estimate. Results were aided by a rise in total net revenues.

LendingClub has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 231.85%.
 

LendingClub Corporation Price and EPS Surprise

LendingClub Corporation Price and EPS Surprise

LendingClub Corporation price-eps-surprise | LendingClub Corporation Quote

The Zacks Consensus Estimate for the company’s fourth-quarter earnings is pegged at 10 cents per share, indicating an 11.1% rise from the prior-year quarter’s reported number. The consensus estimate has been unchanged over the past seven days.

The consensus estimate for sales of $207.4 million suggests an increase of 11.8%.

LendingClub’s Key Estimates for Q4

The Zacks Consensus Estimate for average interest-earning assets stands at $10.2 billion, which indicates a jump of 24.2% from the previous-year quarter. As such, net interest income is likely to have risen. The consensus estimate for NII is pegged at $140.4 million, indicating a rise of 6.8%.

Given the relatively higher interest rates, total loan originations are expected to have witnessed subdued performance. Hence, origination fees are expected to have been adversely impacted. The consensus estimate for the same of $67.5 million suggests a decline of 12% year over year.

The consensus estimate for gain on sales of loans of $12 million indicates a slight rise. Also, the consensus estimate for servicing fees is $17.5 million, suggesting a marginal rise. Thus, total marketplace revenues are anticipated to have been positively impacted in the fourth quarter. The Zacks Consensus Estimate for the same is anticipated to be $62.6 million, suggesting 19.9% growth.

The consensus estimate for other non-interest income is pegged at $2.8 million, implying a jump of 41.5% from the prior-year quarter.

LendingClub’s Projections for Q4

The company expects loan originations of $1.8-$1.9 billion.

Pre-provision net revenues are expected to be between $60 million and $70 million.

Earnings Whispers for LendingClub

Our quantitative model does not conclusively predict an earnings beat for LendingClub this time. This is because it doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: The Earnings ESP for LendingClub is 0.00%.

Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy).

Stocks to Consider

Here few finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model:

Prosperity Bancshares (PB - Free Report) is slated to report quarterly earnings on Jan. 29. PB, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +1.41%.

Over the past seven days, the Zacks Consensus Estimate for PB’s quarterly earnings has remained unchanged at $1.33.

Ameriprise Financial (AMP - Free Report) is also slated to report quarterly earnings on Jan. 29. AMP, which carries a Zacks Rank #3 at present, has an Earnings ESP of +1.99%. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMP’s quarterly earnings estimates have moved 1.1% lower to $8.97 over the past week.


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Ameriprise Financial, Inc. (AMP) - free report >>

Prosperity Bancshares, Inc. (PB) - free report >>

LendingClub Corporation (LC) - free report >>

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