LendingClub (LC) Company Overview

Does LendingClub (LC) have what it takes to be a top stock pick for momentum investors? Let's find out.

The web-based lending company's quarterly revenue beat Wall Street estimates.

LendingClub Corporation (NYSE:LC ) Q4 2024 Earnings Conference Call January 28, 2025 5:00 PM ET Company Participants Artem Nalivayko - IR Scott Sanborn - CEO Drew LaBenne - CFO Conference Call Participants Vincent Caintic - BTIG Brad Capuzzi - Piper Sandler Tim Switzer - KBW Giuliano Bologna - Compass Bill Ryan - Seaport Research Partners John Hecht - Jefferies Reggie Smith - JPMorgan Operator Good afternoon. Thank you for attending today's LendingClub Fourth Quarter ‘24 Earnings Conference Call.

LendingClub (LC) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.09 per share a year ago.

Grew Originations +13%, Revenue +17%, and Total Assets +20% in Fourth Quarter Compared to Prior Year Executed $400 Million Loan Sale out of the Held-for-Sale Portfolio to a New Bank Buyer SAN FRANCISCO , Jan. 28, 2025 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today announced financial results for the fourth quarter and full year ended December 31, 2024. "We executed well in 2024, exiting the year with growth in originations, continued credit outperformance, successful new products and experiences, and more than five million members," said Scott Sanborn, LendingClub CEO.

An improvement in the top line, driven by the expected rise in interest-earning assets and other revenue components to aid LC's Q4 earnings.

Since acquiring Radius Bank in 2021, LendingClub's stock has been volatile. The high interest rate environment proved challenging, but the company has begun to turn the corner thanks to a more stable rate environment and the potential for further interest rate cuts. LendingClub can grow earnings significantly in 2025/2026 as loan originations ramp and bank buyers return to the marketplace.

LendingClub remains an attractive investment due to significant growth opportunities, strong execution, and a valuation below historical norms, despite a strong 2024 performance. The company has evolved from a P2P lender to a mature financial institution, offering diverse loan products across personal, business, auto, and banking services. LendingClub's focus on consumer education and innovative solutions like DebtIQ and Tally positions it to capitalize on rising credit card debt and high interest rates.

LendingClub stock price recovered strongly after bottoming at $4.90 in 2023 as concerns about its viability continued. LC has soared to $17.50, its highest level since February 2022, bringing its market cap to over $1.97 billion.