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Earnings Results: LendingClub stock jumps 40% after surprise Q2 profit

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LendingClub Corp. shares rallied more than 40% in the extended session Wednesday after the company reported a surprise quarterly profit and revenue above Wall Street expectations.

LendingClub
LC,
+1.94%

said it earned $9.4 million, or 9 cents a share, in the second quarter, contrasting with a loss of $78.5 million, or 87 cents a share, in the year-ago quarter.

Revenue rose to $204.4 million, from $40.4 million a year ago.

Analysts polled by FactSet had expected LendingClub to report a loss of 40 cents a share on sales of $130.2 million.

“Our first full quarter operating a digital bank was the most profitable quarter in LendingClub’s history,” Chief Executive Scott Sanborn said in a statement.

“Our earnings are being bolstered by our bank, which is generating a new stream of recurring net interest income that is only beginning to contribute to our bottom line results.”

The company guided for full-year 2021 revenue between $750 million and $780 million.

LendingClub earlier this month settled with the Federal Trade Commission, agreeing to pay $18 million to settle charges that it “fleeced” and “deceived consumers about hidden fees that it charged and about whether their loan applications were approved,” the FTC said.

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