LendingClub shares plunge on weaker-than-expected outlook

LendingClub Corp. shares tumbled 16.4% in Thursday morning trading after the company lowered its outlook for the fourth quarter and delivered a lower-than-expected forecast for next year. In presentation materials for its investor day, Lending Club said that it expected a $3 million hit to its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda), as a result of holding the residual from the company's recent securitization. The company lowered its net revenue guidance for the fourth quarter to a range of $155 million to $160 million, from $158 million to $163 million previously. The company also decreased its fourth-quarter Ebitda projections to a range of $16 million to $20 million, from $19 million to $23 million. LendingClub's outlook for a 2018 net revenue range of $680 to $705 million came in below the FactSet consensus of $719 million. The company's adjusted Ebitda and net income forecasts also came up short. LendingClub shares have fallen 32% so far in 2017, compared with an 18% gain for the S&P 500 .

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