LendingTree (TREE) Issues Encouraging Guidance For 2020

Ahead of its 2019 Analyst and Investor Day, LendingTree, Inc. (NASDAQ:TREE) issued its full-year 2020 guidance.

For 2020, the company expects revenues in the $1,250-$1,300 million range, up 13-18% from the mid-point of the 2019 revenue guidance of $1,105 million. Further, variable marketing margin is likely to be in the range of $450-$470 million. Additionally, the company expects adjusted EBITDA in the $225-$235 million band, up 12-17% from the mid-point of the 2019 adjusted EBITDA figure of $201 million.

"2019 has been another monumental year at LendingTree, and we are thrilled with the progress we've made across the platform," said Doug Lebda, chairman and CEO. "It is becoming increasingly clear that there is a vast opportunity to leverage our diversified portfolio of businesses to become the destination consumers select for choice, education, and support in all of their financial decisions. Today, we look forward to introducing our outlook for 2020 and discussing areas of strategic importance throughout the company," Lebda further noted.

LendingTree’s expansion strategies are expected to further boost its top line. Also, its focus on expanding non-mortgage related product offerings has benefited the company’s top line considerably. Furthermore, reduced dependence on mortgage revenues is a tailwind. However, the company has been witnessing rising costs for enhancement of products. Its mortgage-related product revenues are affected by lower supplies of homes and relatively higher mortgage rates.

Currently, LendingTree carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of LendingTree have gained 33.7% year to date compared with growth of 39.7% recorded by the industry.

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