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LendingClub settles class-action suits, reports higher originations YOY in Q4'17

LendingClub Corp. reported a fourth-quarter 2017 GAAP net loss of $92.0 million, or a loss of 22 cents per share, compared with a net loss of $32.3 million, or a loss of 8 cents per share, in the prior-year period.

The company logged adjusted net income of $5.6 million, or 1 cent per share, versus an adjusted net loss of $8.1 million, or 2 cents per share, in the year-ago quarter.

The S&P Global consensus normalized EPS estimate for the quarter was 2 cents.

Net revenues were $156.5 million for the final quarter of 2017, up year over year from $130.5 million in the fourth quarter of 2016. Adjusted EBITDA was a positive $19 million, compared to negative $900,000 in the year-ago period.

Loan originations during the fourth quarter of 2017 were $2.44 billion, versus $1.99 billion a year earlier.

For the full year 2017, LendingClub reported a net loss of $153.8 million, or a loss of 38 cents per share, compared with a loss of $146.0 million, or a loss of 38 cents per share, in 2016.

Adjusted net income for the year was $2.0 million, or zero cents per share, up from an adjusted net loss of $37.9 million, or a loss of 10 cents per share, for 2016.

The S&P Global consensus normalized EPS estimate for 2017 was 1 cent.

Also, LendingClub said it agreed to a $125.0 million settlement of class-action lawsuits in federal and state courts related to legacy issues first disclosed in 2016.

Of the total settlement amount, $47.8 million will be covered by the company's insurance. The remaining $77.3 million is reflected in the company's fourth-quarter 2017 net loss. It will be paid from liquid assets of about $650 million held as of Dec. 31, 2017.

The preliminary settlement will have no material impact on the company's business operations in 2018.

The company expects total net revenue for the first quarter to be between $145 million and $155 million. It anticipates recording a net loss of $20 million to $25 million, and posting adjusted EBITDA ranging between $5 million and $10 million.

The S&P Global consensus normalized EPS estimate for the first quarter is zero cents.

For full year 2018, LendingClub projects total net revenue ranging between $680 million and $705 million. It also expects to post a net loss of $38 million to $53 million and adjusted EBITDA of $75 million to $90 million.

The S&P Global consensus normalized EPS estimate for full year 2018 is 10 cents.