LendingClub (LC) Misses Q4 EPS by 1c, Offers Guidance; Announces Settlement of Previously Disclosed Class Action Lawsuits

LendingClub (NYSE: LC) reported Q4 EPS of $0.01, $0.01 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $156.5 million versus the consensus estimate of $158.04 million.

GUIDANCE:

LendingClub sees Q1 2018 revenue of $145-155 million, versus the consensus of $159.1 million.

LendingClub sees FY2018 revenue of $680-705 million, versus the consensus of $692.8 million.

Settlement details:

Yesterday, the parties agreed to a Stipulation of Settlement that will be filed with the court, resulting from mediation efforts that began in November 2017. Details include:

• $125.0 million agreement, subject to court approval.
• $47.75 million will be covered by LendingClub's insurance.
• The remaining $77.25 million is reflected in the company's fourth quarter net loss and will be paid from liquid assets of approximately $650 million held at December 31, 2017.

This preliminary settlement will have no material impact on the company's business operations in 2018. As previously disclosed, LendingClub is still subject to several outstanding legacy issues that will result in elevated legal costs, including ongoing regulatory and government investigations, indemnification obligations and litigation.

Commenting on the preliminary settlement, Sanborn added, "We're encouraged to have reached an agreement that will put this matter behind us and substantially reduces our financial risk going forward."

For earnings history and earnings-related data on LendingClub (LC) click here.

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