November 7, 2017 / 9:15 PM / a year ago

LendingClub forecasts fourth-quarter loss, shares plummet

(Reuters) - Online lender LendingClub Corp (LC.N) forecast a fourth-quarter loss and revenue below expectations, sending its shares down sharply after the bell on Tuesday.

A woman looks at her phone as she passes by a Lending Club banner on the facade of the the New York Stock Exchange December 11, 2014. REUTERS/Brendan McDermid

Shares of the company were down 20 percent at $4.38 in extended trading.

For the fourth quarter, the company expects net loss of $3 million-$7 million and revenue in the range of $158 million-$163 million.

Analysts on average were expecting the company to post a loss of just under $1 million on revenue of $173.6 million, according to Thomson Reuters I/B/E/S.

LendingClub has been in the process of regaining traction since May 2016, when an internal probe found the company had falsified documentation when selling $22 million of loans to an investor.

The incident led to the ouster of then-Chief Executive Renaud Laplanche and caused a drop in the volume of loans originated, as banks and other investors began shunning the platform.

Operating expenses rose 6 percent to $160.7 million in the reported quarter.

The San Francisco-based company’s net loss was $6.5 million compared with $36.5 million a year earlier.

Excluding items, the company earned 3 cents per share, in line with average analysts’ estimate, according to Thomson Reuters I/B/E/S.

Total revenue rose 34.5 percent to $154 million, but missed estimates of $157.5 million.

Reporting by Nikhil Subba in Bengaluru; Editing by Shounak Dasgupta

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