Most stocks rally, at least to some degree, after a company reports estimates-beating quarters. But LendingClub (LC 1.94%) apparently isn't most stocks. The next-generation lender's shares sank by nearly 9% on Thursday, despite the company unveiling, after market hours on Wednesday, second-quarter results that topped analyst expectations.
The second quarter was, on paper, a good one for LendingClub. The company's revenue was $330 million for the period, 61% better than the same quarter last year. That was on the back of 78% growth in deposits (to $4.5 billion) for the increasingly banking services-focused company, and a 41% jump in total loan originations.
Net income also headed north; net of a sizable income tax benefit, the company's bottom line expanded by nearly 15% to just under $47 million ($0.45 per share).
Analysts tracking LendingClub weren't expecting such growth. On average, they were modeling just over $299 million for revenue, and a per-share figure of $0.40 for net income exclusive of the tax benefit.
Although the company operated in a somewhat deteriorating macroeconomic environment during the quarter, CEO Scott Sanborn was quoted as saying that "Our strong execution, marketplace bank model, member and data advantages, and our continued focus on prudent underwriting" produced those double-digit growth figures.
LendingClub proffered third-quarter and full-year guidance for both revenue and net income. For the latter period, it believes it will earn $1.15 billion to $1.25 billion on the top line, and post net income of $280 million to $300 million. This is roughly in line with analyst expectations, but higher than 2021's actual results of $895 million and $19 million, respectively.
So there was nothing particularly disappointing about the company's results or guidance. However, given the general investor disfavor of fintech stocks recently, perhaps many are only interested in such companies if they really hit it out of the park with earnings -- and, maybe, proffer guidance that shows continued strong growth momentum).