LendingClub: Turnaround Story Of The Year?

LendingClub (LC) is up 10% in a tough tape, but the stock should be soaring 20% or 30% or 40% on the Q2 numbers.
  • Record loan originations of $3.1 billion
  • Record net revenue of $190.8 million
  • Record adjusted EBITDA of $33.2 million 
Even the guidance was strong:
  • Reaffirms 2019 net revenue forecast of $765M-$795M
  • 2019 adjusted net loss of $5M-$20M vs prior range of $9M-$29M.
  • Q3 net revenue of $200M-$210M; consensus estimate of $204.7M
  • Q3 adjusted net income of $0M-$5M
The fintech has $670 million in cash and financial assets with a market cap of only $1.2 billion. The stock should trade at multiples of the current stock price. 

Disclosure: Long LC. Please review the disclaimer page for more details. 


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