Online lending exchange LendingTree (Nasdaq: TREE) has revised its financial guidance upward for the third quarter ended Sept. 30, and the news sent its stock price soaring Monday.
The company now expects earnings per share of 6 cents, compared to its previous guidance of a 1-cent loss per share. Net income attributable to common shareholders for the third quarter is currently estimated now to be $1.4 million, improved from the previous guidance of a net loss of $200,000.
On the news, shares of TREE jumped more than 13 percent to $15.85, which is $1.90 over the previous close. Trading for the day ranged from $13.75 to $16.22 and for the year, it is from $3 to $15.99.
With its revised forecast, Charlotte-based LendingTree says it expects to become profitable one quarter earlier than previously anticipated.
“We are experiencing continued strength in the mortgage refinance product, as well as the home equity, auto, and realty services products, which are all benefiting from a series of new operating initiatives implemented this year,” Doug Lebda, founder and chief executive officer of LendingTree, said in a statement. “By implementing these initiatives, we have increased the capacity of our lending exchange, and the conversion metrics across our loan products have remained strong–. Consequently, we remain optimistic on our business outlook.”
LendingTree is currently estimating the potential impact the anticipated third quarter results will have on its future outlook and will discuss its projections for the remainder of 2002 and 2003 at its next quarterly earnings conference call in late October.