Shares of LendingClub Corp. were falling more than 15% in after-hours trading Wednesday after the financial services and lending company topped expectations with the results from its latest quarter but delivered a downbeat outlook. The company posted net income of $43.2 million, or 41 cents a share, up from $27.2 million, or 26 cents a share, in the year-earlier period. The FactSet consensus was for 33 cents a share in earnings. Total net revenue increased to $304.9 million from $246.2 million, while analysts had been expecting $294.8 million. “As we anticipated, marketplace volumes were impacted by higher funding costs for certain loan investors, driven by rapidly increasing interest rates,” Chief Executive Scott Sanborn said in a release. “Over time, as rates stabilize and we continue to reprice personal loans, we expect this impact to gradually moderate.” For the fourth quarter, LendingClub executives expect $255 million to $265 million in revenue as well as $15 million to $25 million in net income. The FactSet consensus was for $280 million in revenue along with $32 million in net income.
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