Lendingtree shares tumble after quarterly report, outlook

LendingTree

01/11/2024 16:51

** Shares in Lendingtree Inc  TREE.O  down ~18% on Friday,
tracking for its biggest one-day pct decline in about 15 months
despite its better-than-expected quarterly report and after
several analysts raised their price targets for the stock
    ** TREE reported Q3 adj EPS of $0.80 vs mean estimate for
$66 while rev of $260.79 mln was ahead of consensus expectation
for $244.51 mln, as per LSEG
    ** It forecast FY rev of $870mln-$880mln versus prior range
$830mln-$870mln; includes Q4 rev view of $231mln-$241mln, which
would be below Q3
    ** Given the Q3 beat, Rick Meckler, partner at Cherry Lane
Investments, notes outlook "somewhat muted" 
    ** While analysts cited strength in TREE's insurance related
business they noted weakness in its consumer segment
    ** Truist analyst Youssef Squali says home, consumer "likely
to remain challenged until the rates environment improves;" 
while insurance should drive higher overall growth "at least the
next couple of quarters," marketing focus on insurance may
pressure variable marketing margins
    ** Still, Truist kept buy rating, increased PT for the stock
to $70 from $60; KBW raised PT to $73 from $71; Oppenheimer
raised PT to $70 from $65; Needham upped PT to $78 from $67
    ** TREE, seeing biggest pct decline since late July 2023, 
last at $46.71 vs median PT of $70, according to LSEG which
shows 8 analyst ratings: 2 'strong buy,' 4 'buy,' and 2 'hold'
    ** YTD shares of TREE up ~54% even with today's move

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))