Why Shares of LendingClub Skyrocketed This Week
Shares of the digital marketplace bank LendingClub (NYSE: LC) shot up as much as 30% this week after another terrific quarter of earnings results.
In the third quarter, LendingClub reported diluted earnings per share of $0.27 on total revenue of more than $246 million, both numbers that beat analyst estimates. The company also did more than $3.1 billion of loan originations, the main driver of revenue. Profitability, revenue, and loan origination volume also exceeded management's previous guidance for the quarter.
The quarter was particularly impressive because the surge of the delta variant in the period definitely slowed the economic recovery slightly. Additionally, while LendingClub's bread and butter is typically originating unsecured personal loans for consolidating credit card debt and making larger purchases, the fintech company also grew auto refinance originations 85% from the sequential quarter. The auto refinance market could be another huge opportunity.
Source Fool.com
