LendingTree Stock Soars After Q4 Profit Sails Past Expectations, Retail Mood Brightens
Synopsis
Its quarterly revenue nearly doubled to $261.5 million and exceeded Wall Street’s expectations of $238.12 million.
LendingTree (TREE) stock jumped 15.3% in extended trading on Wednesday after the company’s fourth-quarter earnings topped Wall Street’s estimates.
The online lending marketplace posted an adjusted net income of $15.8 million, or $1.16 per share for the three months ended Dec. 31, while analysts, on average, expected the company to post $0.53 per share, according to FinChat data.
Its quarterly revenue nearly doubled to $261.5 million and exceeded Wall Street’s expectations of $238.12 million.
The company reported a net income of $7.5 million, or $0.55 per share, compared with $12.7 million, or $0.98 per share in the year-ago quarter.
The company’s insurance segment revenue more than doubled to $171.7 million, as companies increased their marketing spend on LendingTree steadily throughout the year due to a rise in demand for new customers created by positive underwriting results.
LendingTree’s home segment revenue rose 35% to $34 million. The firm expects further growth in its home equity business this year as home valuations continue to hover near record levels.
The company said its personal loan revenue grew 21% to $26.5 million during the quarter as lenders increased their appetite for new loan originations after the stabilization of consumer credit performance, last year.
The Charlotte, North Carolina-based company forecasted 2025 revenue to be between $985 million and $1.03 billion. Wall Street expects it to post $1.02 billion in revenue.
LendingTree said it expects double-digit percentage points revenue growth in both the home and consumer segments, with more modest insurance segment growth following a record year.
Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (92/100) territory from ‘bullish’(68/100) a day ago, while retail chatter rose to ‘extremely high.’
One user hailed the earnings as a ‘blockbuster’ and expected the stock to trade between $60 and $100 soon.
Another retail trader expected to see more insider buying following the earnings report.
Over the past year, LendingTree shares have gained 3.8%.
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