LendingClub Corp. on Tuesday reported earnings in line with Wall Street expectations, but a plan to restrict lending to all but the most creditworthy borrowers send the stock down 23% in Wednesday morning trading.
“We estimate this cuts originations – and revenue – roughly 5%, and adjust our estimates accordingly,” wrote Susquehanna International Group analysts, who have a positive rating and a $9 price target on the company.
LendingClub LC, -22.16% management said 2017 revenue would total $576-581 million, down from earlier estimates of $585-600 million, while the projected GAAP net loss would narrow to $69-65 million versus the $69-61 million forecast earlier.
