(Reuters) - Online lending pioneer LendingClub Corp (LC.N) beat analysts’ estimates for third-quarter profit on Tuesday and forecast current-quarter largely above estimates, sending its shares up 4% in after-hours trading.
Transaction fees jumped 17% at the company, which helps connect customers looking for loans to individuals or institutional investors, such as banks, through its online marketplace.
Loan originations soared 16% to $3.35 billion in the third quarter, with total revenue rising 11% to $204.9 million.
LendingClub has been working to turn itself around following the ouster of its founder and then-CEO Renaud Laplanche in May 2016. It has launched new distribution platforms and pushed deeper into outsourcing its processes to rein in costs.
The company said on Tuesday it was on track to post adjusted net income profitability over the second half of 2019.
"Returning to adjusted net income profitability is an important milestone for LendingClub," Chief Executive Officer Scott Sanborn said in a statement. (reut.rs/2Ck3Hdi)
The company forecast fourth-quarter net income and adjusted net income to be in the range of zero-to-$5 million, the mid-point of which is above the analysts’ average estimate of $2.1 million, according to IBES data from Refinitiv.
Excluding one-time items, LendingClub earned 9 cents per share in the third quarter, while analysts on average had expected a profit of 2 cents.
Reporting by C Nivedita in Bengaluru; Editing by Sriraj Kalluvila