The analysts covering LendingClub Corporation (NYSE:LC) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After the downgrade, the consensus from LendingClub's nine analysts is for revenues of US$792m in 2024, which would reflect a painful 33% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to plummet 34% to US$0.32 in the same period. Prior to this update, the analysts had been forecasting revenues of US$906m and earnings per share (EPS) of US$0.42 in 2024. Indeed, we can see that the analysts are a lot more bearish about LendingClub's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for LendingClub

The consensus price target fell 18% to US$8.97, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 27% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 4.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that LendingClub's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for LendingClub. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of LendingClub.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for LendingClub going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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