LendingTree (TREE) Shares Plunge 10% on Revised Q2 Guidance
By Davit Kirakosyan
LendingTree Inc (NASDAQ:TREE) shares were trading more than 10% lower after-hours following the company’s revised Q2 guidance release.
The company expects Q2 revenue to be in the range of $259 – $264 million, compared to the prior range of $283 – $293 million. The consensus was $287.2 million. Adjusted EBITDA is expected in the range of $26 – $29 million, compared to the prior range of $35 – $40 million.
According to Trent Ziegler, the CFO of LendingTree, the company saw a significant impact on its Home segment due to the challenging interest rate environment, with nearly doubled mortgage rates over the last six months. This resulted in a sharp decline in refinance volumes and in more recent pressure on purchase activity.