Lending Tree, Inc. TREE reported an adjusted net income per share of 25 cents in the first quarter of 2023, down 46% year over year. The Zacks Consensus Estimate was pegged at a loss of 7 cents.
The stock lost 25.1% following the release of the results, reflecting a bearish reaction by investors on the year-over-year decline in revenues and earnings. Nonetheless, TREE’s results were aided by lower costs.
LendingTree reported a net income of $13.5 million against a loss of $10.8 million in the year-ago quarter.
Revenues Decline, Expenses Fall
Total revenues were down 29% year over year to $200.5 million in the first quarter. The downside primarily stemmed from a decline in the Home, Consumer and Insurance segments' revenues. Also, the reported figure missed the Zacks Consensus Estimate of $207.4 million.
The total cost of revenues was $13.7 million, down 11.6% from the prior-year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $14.5 million, down 51% year over year. The variable marketing margin was at $76.1 million, down 19%.
As of Mar 31, 2023, cash and cash equivalents were $150.1 million compared with $298.8 million as of 2022 end. Long-term debt was $623.3 million compared with $813.5 million as of 2022 end.
For the second quarter of 2023, total revenues are estimated between $190 million and $200 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $17-$22 million and $75-$80 million, respectively.
For 2023, total revenues are estimated between $760 million and $800 million. Adjusted EBITDA is anticipated to be $80-$90 million. The variable marketing margin is expected between $290 million and $310 million.
The company’s total revenues were affected mainly by the decline in Home and Consumer segment revenues. Nonetheless, TREE has been focused on maintaining the balance between its near-term profitability and aligning the same for long-term success.
LendingTree, Inc. Price, Consensus and EPS Surprise
LendingTree, Inc. price-consensus-eps-surprise-chart | LendingTree, Inc. Quote
Currently, LendingTree carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
BlackRock, Inc.’s BLK first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
BLK's results benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were major headwinds.
Invesco’s IVZ first-quarter 2023 adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 32.1% from the prior-year quarter. Our estimate for earnings was 31 cents.
Results benefited from a decline in operating expenses. However, lower AUM balance and long-term outflows hurt IVZ’s revenues.
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