LendingClub profit misses estimates due to higher expenses

(Reuters) - LendingClub Corp LC.N reported fourth-quarter adjusted earnings that missed Wall Street estimates by a cent as the online lender spent more for origination and servicing of loans.

Shares of the company fell 7.9 percent at $3.80 in aftermarket trading on Tuesday after the company said its operating expenses rose 52 percent to $247.8 million in the quarter. The origination and servicing expenses rose 30 percent.

The San Francisco-based company’s net loss widened to $92 million in the quarter ended Dec. 31, compared with a loss of $32.3 million a year earlier, mainly due to a class action litigation settlement expense of $77.25 million.

The net loss was more than the $6 million to $10 million range the company had forecast earlier.

Excluding one-time items, LendingClub earned 1 cent per share, narrowly missing the average analysts’ estimate of 2 cents per share, according to Thomson Reuters I/B/E/S.

Chief Executive Officer Scott Sanborn has been trying to repair the credibility of the company since an internal probe in May 2016 found the online lender had falsified documents when selling $22 million of loans to an investor.

Total revenue rose 20 percent to $156.5 million but missed analysts’ estimates of $158.04 million.

Reporting by Nikhil Subba in Bengaluru; Editing by Arun Koyyur