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LendingClub Corp: LC Stock Slides as CFO Skips Town

LC - LendingClub Corp: LC Stock Slides as CFO Skips Town

Source: LendingClub

LendingClub Corp (NYSE:LC) stock is diving headfirst into a pool of sellers after taking a plunge from the earnings plank.

LendingClub LC stock

Source: LendingClub

LendingClub, which connects investors with borrowers, posted a loss of 9 cents per share of LC stock on $103.4 million in revenue versus expectations for a loss of only 2 cents on $100.5 million in sales.

While that’s a miss large enough to fill LC stock holders with anxiety, LendingClub CEO Scott Sanborn … well, he believes everything is hunky-dory:

“Our efforts to reengage investors are working, with fifteen of our top twenty largest investors back on the platform today. Despite the unusual disruption to our supply of capital in May, we facilitated nearly $2 billion of loans to nearly 170,000 borrowers. While we still have a lot of work ahead, the value that we bring to borrowers and investors is stronger than ever, and we believe we have the resources and resolve to execute on our mission.”

However, news that LendingClub’s chief financial officer, Carrie Dolan, would “pursue a new opportunity” completed the dyad of dissonant tones for investors. LC shares are now trading down some 4% in after-hours trading, adding on to the nearly 60% losses that LendingClub stock sustained for the year.

This comes after the resignation of LC CEO Renaud Laplanche in May relating to “improper lending practices.” Apparently, Dolan brought up her intent on leaving earlier in the year, but management asked her to delay her departure as the company was absorbing enough shockwaves from the its shakeup at the top level.

In the interim, LendingClub corporate controller Bradley Coleman will act as CFO until a permanent replacement is announced.

As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities. 

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/lc-stock-lendingclub-corp-earnings-cfo/.

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