OnDeck Capital Inc shares soar after lifting full-year profit outlook
OnDeck Capital Inc (NYSE:ONDK) whizzed past Wall Street’s second-quarter estimates and raised its full-year profit outlook for 2018 as the small business lender wrote more loans and benefited from interest rates ticking higher.
The results cheered investors, who sent OnDeck shares up 25% toUS$8.48 in morning trade.
The lender swung from a loss last year to report second-quarter net income of US$5.8mln, or US$0.07 per share, on gross revenue of US$95.6mln. On an adjusted basis, its earnings came in at US$0.13.
Its second-quarter showing crushed Wall Street’s consensus estimate of US$0.05 per share on revenue of US$92.09mln.
“We delivered record net income driven by asset growth and margin expansion, and our investments in risk management continue to pay off as credit metrics remained strong,” said CEO Noah Breslow in a statement.
Headquartered in New York, OnDeck provides online loans and lines of credit to small businesses. It also offers a platform to US banks looking to lend to small businesses.
The company said it has profited from introducing new credit protocols, paring back its costs and putting money into risk management in the quarter.
A winning point was that the company now projects its full-year profit for the year will range from US$10mln to US$16mln, up from its previous guidance of 0 to US$10mln.
Its income from interest payments was also a bright spot as it jumped 10% in the quarter to US$92.4mln thanks to higher interest rates.
OnDeck’s second-quarter performance also trounced its results from the same period last year when it posted a loss of US$1.5mln, or US$0.02 per share.
Contact Ellen Kelleher at [email protected]
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/202399/ondeck-capital-inc-shares-soar-after-lifting-full-year-profit-outlook-202399.html
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