LendingClub shares take a hit from disappointing forecast

December 7, 2017 1:31 PM EST

FILE PHOTO - A woman looks at her phone as she passes by a Lending Club banner on the facade of the the New York Stock Exchange December 11, 2014. REUTERS/Brendan McDermid

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(Reuters) - Shares of LendingClub Corp (NYSE: LC) hit a record low on Thursday after the online lender raised its loss estimate and cut its revenue forecast for the fourth quarter.

Shares of the company fell as much as 22.6 percent to $3.29 and were among the top losers on the New York Stock Exchange,

The company said it now expected revenue in the range of $155 million to $160 million, below its earlier estimate of $158 million to $163 million. (http://bit.ly/2nB4aU9f).

Net loss is expected to range between $6 million and $10 million, compared with its previous loss forecast of $3 million to $7 million.

LendingClub has been trying to recover after an internal probe last year found the company had falsified documentation when selling $22 million of loans to an investor.

The incident led to the ouster of Chief Executive Renaud Laplanche and gave bad press to the nascent industry.

However, the entry of Square Inc (NYSE: SQ), which is headed by Twitter Inc (NYSE: TWTR) CEO Jack Dorsey, into the online lending industry earlier this year has generated new interest in these companies.

(Reporting by Diptendu Lahiri in Bengaluru)

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