LendingTree stock falls after decline in mortgage activity leads to guidance cut

lendingtree-stock-falls-after-decline-in-mortgage-activity-leads-to-guidance-cut

LendingTree Inc. TREE, +5.18% shares dove more than 13% in after-hours trading Thursday, after the lender trimmed its guidance for the quarter as a result of lower levels of home-mortgage loans. Executives said they now expect second-quarter revenue of $259 million to $264 million, after previously forecasting $283 million to $293 million, and also reduced goals for variable marketing margin and adjusted Ebitda. “The challenging interest-rate environment that progressed through this quarter combined with annual inflation persistently running above 8% has presented additional challenges for many of our mortgage lending and insurance partners,” Chief Financial Officer Trent Ziegler said in a statement. “We have seen the most significant impact in our Home segment as mortgage rates have nearly doubled over the last six months, causing a sharp decline in refinance volumes and more recent pressure on purchase activity.” Ziegler also said that LendingTree executives were reviewing the company’s annual guidance, and would provide revised guidance for the year when they present full second-quarter results next month. LendingTree shares have declined 55.2% so far this year, as the S&P 500 index SPX, +0.95% has fallen 21.1%.

Source: Marketwatch

Related Posts