BUZZ-Lendingtree shares tumble after quarterly report, outlook

Reuters2024-11-02

** Shares in Lendingtree Inc 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;))

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