Needham Maintains Buy Rating, $140 Target On LendingTree Ahead Of Q1 Results

Lendingtree Inc (NASDAQ: TREE) is expected to report its first quarter results modestly above expectations, according to a note from Needham.

The online loan marketplace company is set to report its first quarter numbers on May 4 before the market open. Wall Street analysts, on average, expect earnings of $0.71 a share on revenue of $86.58 million. Analyst Kerry Rice sees first quarter revenue and EBITDA of $86.0 million and $13.2 million, respectively.

"We believe Tree could report modest upside driven by strong Mortgage, Credit Cards, and Home Equity revenue growth. We expect Tree's Personal Loan segment to grow in-line with our expectations, but upside is likely muted given the recent industry slowdown in lender demand," Rice wrote in a note.

The analyst also expects the company to reaffirm its FY16 revenue guidance of $370-$380 million and EBITDA guidance of $62-$65 million.

Rice expects LendingTree's mortgage business to remain strong as it continues to gain market share and outpace industry growth due to strong conversion rate, addition of new lenders, and increasing wallet share from existing lenders. In addition, the Fed keeping benchmark rates on hold will benefit mortgage lenders.

Shares of LendingTree gained 0.57 percent to $89.98; Rice has a Buy rating and $140 price target on the stock.