LendingClub Corp. (LC) stock prices were down by 8.88% as of the market closing on October 27th, 2021. This brought the price per share down to USD$31.62. Subsequent premarket fluctuations saw the stock surge by 25.95%, bringing it up to USD$39.83.
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Record Breaking Quarter
October 28th 2021 saw LC stock report third quarter of fiscal revenues in the amount of USD$246.2 million, setting a new company record. This represents total sequential revenue growth of 20%, which surpassed previous origination growth of 14%. The company set another record with its net income for the third quarter of fiscal 2021 in the amount of USD$27.2 million. This represents a 190% increase from the prior quarter. This highlights the positive operating leverage in the fully integrated digital bank business model.
Net Income Reports
The net income of USD$27.2 million for the third quarter of fiscal 2021 represented earnings per share in the amount of USD$0.26 per share. Net income for the quarter was adversely impacted by USD$51.5 million of notable items. The negative impact also included USD$34 million of Current Expected Credit Loss (CECL) provisioned, as well as USD$17.5 million of net revenue deferrals. Both of these developments were driven by strong retained loan growth. These factors resulted in a reduction of earnings per share for the third quarter of 2021 by USD$0.49 per share.
LC Stock Builds on Success
LC stock’s stellar revenue and earnings growth trajectory has been consolidated by the transformation of the company’s business into a digital marketplace bank. Its success continues to be driven by its competitive advantages, which includes its rapidly expanding base of 3.8 million members. These competitive advantages were further compounded by exceptional data science capabilities, as well as its proven marketplace model.
LC Stock’s Transformation
The company continues to levy its enhanced operating leverage, bolstered by its digital first infrastructure. In conjunction with the ongoing transition of consumers towards online banking and e-commerce, the company is confident in its decision to grow a next generation digital bank.
Future Outlook for LC Stock
LC stock is poised to maintain the momentum generated over the course of the third quarter of fiscal 2021. The company reported a promising quarter, as evidenced by its financial reports, and is keen to continue its trajectory of success. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.
