Here is why LendingClub Corporation (LC) stock plummeted on Wednesday?

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AFRM Stock
AFRM Stock

LendingClub Corporation (LC) shares plummeted 13.96% in after-hours on Wednesday, January 26, 2022, and closed at $19.36. However, in the regular trading session of Wednesday, LC’s stock gained 4.41%. LC shares have risen 103.80% over the last 12 months, and they have moved up 2.65% in the past week. Over the past three months, the stock has lost 35.16%, while over the past six months, it has soared 38.46%.

Let’s have a brief look at its recent news and developments.


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LC latest financial results

On January 26, 2022, LendingClub Corporation (LC), announced financial results for the fourth quarter and full-year ended December 31, 2021.

Q4 2021 financial highlights

  • Revenue was $262.2 million in the fourth quarter of 2021 compared to $75.9 million in the fourth quarter of 2020.
  • Net income was $29.1 million in Q4 2021 compared to a net loss of $26.7 million in Q4 2020.

FY 2021 financial highlights

  • LC reported total revenue of $818.6 million for the financial year 2021 compared to $318.1 million in the fiscal year of 2020.
  • It earned a net income of $18.6 million for FY 2021 compared to a net loss of $187.5 million in FY 2020.

Q1 2022 financial outlook

For Q1 2022, LendingClub Corporation is expecting

  • Total revenue in the range of $255 million to $265 million.
  • Net income in the range of $25 million to $30 million.

FY 2022 financial outlook

  • For FY 2022 total revenue is expected to be in the range of $1.1 billion to $1.2 billion.
  • Net income is expected to be $130 million to $150 million.

LC 2021 Reality Check report findings

On December 8, 2021, LendingClub Corporation (LC) released findings from its fifth edition of the 2021 Reality Check: Paycheck-to-Paycheck research series, which was conducted in partnership with PYMNTS.com.

Now more people are assuming a negative outlook about the economy and the share of negative consumers has increased from 32% to 40% since June 2021.

37% of consumers who are not living paycheck-to-paycheck are pessimistic about the economy. Due to this, the share of consumers who are optimistic about the economy has dropped, falling to 34 percent in October from 44 percent in June.

LC refinance loans coverage area

On November 30, 2021, LendingClub Corporation (LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, announced that its auto refinance loans are now available in 40 states, covering 94 percent of the U.S. population, and borrowers have saved an average of $4,000 over the life of the loan.

Conclusion

Due to increased financial costs and a gloomy outlook for FY 2022, LC stock went down in the after-hours on Wednesday. We hope that it will perform well on Thursday.

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