Investors might want to bet on Tree.com (TREE) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.Analysts' growing optimism on the earnings prospects of this mortgage lending service provider is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ...

Tree.com (TREE) shares soared 5.8% in the last trading session to close at $49.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.LendingTree stock is witnessing a strong price increase driven by its strong fourth-quarter 2024 results and upbeat 2025 outlook. For 2025, the company forecasts revenue growth of 9-14% on a year over year basis to $985M-$1.025B, with double-digit gains in the Home a ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

Tree.com (TREE) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ofte ...

User Growth - In 2024, LendingTree added 3.1 million new users, bringing cumulative active users to 31.3 million as of December 31, 2024[253]. Revenue Performance - Revenue attributed to registered Spring users who initiated transactions from the Spring platform was approximately $23.1 million, representing 3% of total revenue for the year ended December 31, 2024[253]. - Revenue increased by $227.7 million, or 34%, to $900.2 million in 2024 compared to 2023, driven primarily by a 120% increase in the Insurance segment[271]. - Total revenue increased by 34% to $900.2 million in 2024 compared to 2023, with segment profit rising by 7% to $309.6 million[307]. - Insurance segment revenue rose by $299.1 million, or 120%, to $548.7 million in 2024, attributed to a 63% increase in revenue per consumer and a 35% increase in volume[273]. - Consumer segment revenue decreased by $56.5 million, or 20%, to $222.5 million in 2024, mainly due to declines in credit cards and other credit products[274]. - Home segment revenue fell by $14.9 million, or 10%, to $128.9 million in 2024, primarily due to a 29% decrease in mortgage product revenue[277]. - Revenue from the home equity loan product increased by 3% to $87.5 million in 2024, with a 23% increase in the volume of consumers completing request forms[309]. - Revenue for the year ended December 31, 2024, was $900.2 million, representing a 33.9% increase from $672.5 million in 2023[392]. Cost and Expenses - Total costs and expenses increased by $142.5 million, or 20%, to $855.6 million in 2024, with selling and marketing expenses rising by $202.4 million, or 47%[271]. - Cost of revenue as a percentage of revenue decreased to 4% in 2024 from 6% in 2023, reflecting a decrease in compensation and benefits[282]. - General and administrative expenses decreased to 12% of revenue in 2024 from 18% in 2023, primarily due to reduced compensation and benefits[292]. - Selling and marketing expenses rose to $636.0 million in 2024, up 47% from $433.6 million in 2023[392]. Profitability and Loss - Operating income improved by $85.2 million, or 210%, resulting in an operating income of $44.6 million in 2024 compared to a loss of $40.6 million in 2023[271]. - Net loss decreased by $80.7 million, or 66%, to $41.7 million in 2024 from a loss of $122.4 million in 2023[271]. - The net loss for the year ended December 31, 2024, was $41.7 million, compared to a net loss of $122.4 million in 2023, indicating a reduction in losses[326]. - Net loss for the year ended December 31, 2024, was $41,704,000, a significant improvement from a loss of $122,404,000 in 2023 and $187,952,000 in 2022, indicating a reduction in losses by approximately 66% year-over-year[398]. Workforce and Restructuring - The company incurred approximately $5.3 million in severance charges due to a workforce reduction plan that eliminated about 13% of its workforce[260]. - The company closed the Ovation credit services business, resulting in a workforce reduction of approximately 197 employees, or 18%, and incurred $2.1 million in restructuring expenses[298]. - The Reduction Plan led to the elimination of approximately 162 employees, or 13%, with severance charges of approximately $5.3 million, including $4.3 million in cash expenditures[299]. Impairment and Valuation - The closure of the Ovation credit services business resulted in an asset impairment charge of $4.2 million in 2023[262]. - An interim quantitative goodwill impairment test performed on September 30, 2023, resulted in a goodwill impairment charge of $38.6 million for the Insurance reporting unit[359]. - The carrying value of the Insurance reporting unit exceeded its fair value, while the Home and Consumer reporting units showed no impairment[359]. - The company maintained a valuation allowance of $167.5 million against net deferred tax assets as of December 31, 2024[354]. - Impairment charges on equity securities amounted to $58.4 million in 2024 and $114.5 million in 2023[365]. - The carrying value of equity investments at December 31, 2024, is $1.7 million[365]. Cash Flow and Financing - Cash and cash equivalents as of December 31, 2024, were $106.6 million, down from $112.1 million as of December 31, 2023[328]. - Net cash provided by operating activities in 2024 was $62.3 million, compared to $67.6 million in 2023, showing a slight decrease[341]. - Total net cash used in financing activities in 2024 was $56.5 million, significantly lower than $242.0 million in 2023, indicating improved cash management[345]. - The company has $115.3 million outstanding on the 2025 Notes as of December 31, 2024, with plans to use cash on hand and available borrowings for repayment[332]. - The company entered into an Equity Distribution Agreement in July 2024 to sell up to $50.0 million of common stock, although no sales were made during 2024[333]. - Proceeds from term loans in 2024 amounted to $125,000,000, compared to no proceeds in 2023, indicating a new financing strategy[398]. Market and Economic Conditions - The average mortgage rate in 2024 was 6.7%, compared to 6.8% in 2023, and more than double the low rates seen in 2021[236]. - Total refinance origination dollars decreased to 15% of total mortgage origination dollars in 2023 from 30% in 2022, while increasing to 28% in 2024[247]. - Existing home sales decreased by 19% in 2023 compared to 2022, with a further decrease of 1% in 2024[250]. - Advertising budgets from carrier partners began to increase in the last months of 2023, indicating a potential recovery in the Insurance segment[235]. Tax and Regulatory - The effective tax rate for 2024 was (11.6)%, compared to 2.0% in 2023, primarily due to changes in the valuation allowance[305]. - The company incurred income tax expense of $139.4 million related to the valuation allowance during 2022[354]. Investment Performance - The company reported a loss on investments of $58,376,000 in 2024, down from $114,504,000 in 2023, reflecting improved investment performance[398]. - Interest expense of $11.5 million was incurred after drawing $125.0 million on a first lien term loan facility in March 2024[300]. - Interest paid increased to $38,203,000 in 2024 from $23,685,000 in 2023, suggesting higher borrowing costs[398]. Segment Information - The company has three reportable segments: Home, Consumer, and Insurance, which are regularly reviewed for performance assessment[420]. - The company discontinued its credit services product in Q2 2023, impacting revenue streams from upfront fees and subscription fees[407].

LendingTree, Inc. TREE shares are trading higher on Thursday after the company reported better-than-expected fourth-quarter financial results after-hours yesterday.The company reported earnings of $1.16 per share, which beat the analyst consensus estimate of losses of five cents, and revenue came in at $261.5 million, which beat the analyst consensus estimate of $236.84 million.LendingTree sees first-quarter revenue in a range of $241 million to $248 million, versus the $243.27 million analyst estimate. The ...

LendingTree, Inc.’s (TREE) fourth-quarter 2024 adjusted net income per share of $1.16 per share topped the Zacks Consensus Estimate of 37 cents. The figure compares favorably with the 28 cents reported in the prior-year quarter.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.The results were driven by a rise in revenues. However, an increase in total cost was a spoilsport.The results exclude certain non-recurring items. After considering these, TREE reported a GAAP net income ...

Financial Data and Key Metrics Changes - The company reported $32 million of adjusted EBITDA in Q4 2024, exceeding forecasts and indicating strong performance [6][9] - The company expects a 16% annual growth in adjusted EBITDA at the midpoint of the range for 2025 [9][91] - Net leverage improved to 3.5x trailing adjusted EBITDA, with expectations for further reduction as earnings grow [10][11] Business Line Data and Key Metrics Changes - Insurance segment revenue grew significantly, with homeowners insurance up 175%, home equity up 48%, small business up 45%, personal loans and auto loans both up 21%, and mortgage up 12% year-over-year [7][8] - The company anticipates continued double-digit revenue growth across all product lines in Q1 2025 [9] Market Data and Key Metrics Changes - The company noted a strong cycle in auto insurance demand, benefiting from both consumer and carrier perspectives [6] - The company expects stable interest rates and a healthy consumer outlook to drive demand from customers and lending partners [12] Company Strategy and Development Direction - The company emphasizes a diversified business model, which has contributed to its growth outlook [9] - Focus on variable marketing and fixed costs to generate positive operating leverage as revenue scales [10] - The company is exploring AI and operational excellence as part of its strategy for future growth [60][62] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2025, despite expectations for more modest growth in the insurance segment as the year progresses [16][18] - The company is focused on returning variable marketing margins to historical norms while maintaining strong growth in other segments [18][56] - Management highlighted the importance of consumer demand and the potential for improved credit metrics to enhance free cash flow generation [11][12] Other Important Information - The company has seen a significant improvement in its balance sheet over the past year [10] - Management noted that the regulatory environment is becoming more favorable, which could benefit the business [73] Q&A Session Summary Question: Insights on insurance growth expectations for 2025 - Management expects more modest growth in insurance as the year progresses, with strong growth compared to the first half of the previous year [16][18] Question: Opportunities for price increases in the insurance segment - Management indicated that pricing dynamics depend on market competition, with expectations for continued growth despite potential price increases [20][22] Question: Market share dynamics in the insurance sector - The top 3 or 4 carriers are driving the market, with smaller carriers also growing rapidly [27] Question: Impact of interest rates on business - Lower interest rates are expected to benefit all business segments, particularly home equity [29][30] Question: Financial impact of the one-to-one consent ruling - Management expressed optimism about recovering revenue from insurance and lending products following the favorable ruling [71][72] Question: Consumer segment growth sustainability - Management noted strong growth in small business and personal loans, with expectations for continued demand [56][58] Question: Margin expectations for the consumer segment - Management anticipates normalization of margins in 2025 while still delivering double-digit revenue growth [78] Question: Potential impact of tariffs on auto insurance demand - Management believes that while fewer car shoppers may impact some consumers, overall shopping behavior for insurance will remain strong [85][86]

Financial Data and Key Metrics Changes - The company reported $32 million of adjusted EBITDA in Q4 2024, exceeding forecasts and indicating strong performance [6] - The company expects a 16% annual growth in adjusted EBITDA at the midpoint of the range for 2025 [9][91] - Net leverage improved to 3.5x trailing adjusted EBITDA, with expectations for further reduction as earnings grow [10][11] Business Line Data and Key Metrics Changes - Insurance segment revenue grew significantly, with homeowners insurance up 175%, home equity up 48%, small business up 45%, personal loans and auto loans both up 21%, and mortgage up 12% year-over-year [7][8] - The company anticipates continued double-digit revenue growth across all product lines in Q1 2025 [9] Market Data and Key Metrics Changes - The company noted a strong cycle in auto insurance demand, benefiting from both consumer and carrier perspectives [6] - The company expects stable interest rates and a healthy consumer outlook to drive demand from customers and lending partners [12] Company Strategy and Development Direction - The company emphasizes a diversified business model, which has proven valuable in driving revenue growth across all segments [9] - Focus on variable marketing and fixed costs to generate positive operating leverage as revenue scales [10] - The company is exploring AI and operational excellence to improve efficiency and drive growth [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth after a challenging period, with strong momentum heading into 2025 [9][12] - The company is focused on maintaining strong relationships with carriers and adapting to market dynamics [16][18] Other Important Information - The company has seen a significant improvement in credit metrics, which is expected to lower interest expenses and improve free cash flow generation [11] - The company is experiencing all-time high performance in the insurance sector, with expectations for continued growth [41] Q&A Session Summary Question: Insurance growth expectations for 2025 - Management expects more modest growth in insurance as the year progresses, with strong growth compared to the first half of the previous year [16][18] Question: Market share dynamics in insurance - The top 3 or 4 carriers are driving the market, with smaller carriers also growing rapidly [27] Question: Impact of interest rates on business - Lower interest rates are expected to benefit all business segments, particularly home equity [29][30] Question: Consumer segment growth sustainability - The consumer segment is expected to see sustainable growth, driven by small business and personal loans [56][58] Question: Financial impact of regulatory changes - Winning the one-to-one consent case is expected to have a positive impact on revenue from insurance and lending products [70][72] Question: Margin expectations for consumer segment - Margins are expected to normalize in 2025 while still delivering double-digit revenue growth [78] Question: Impact of potential tariffs on auto insurance - The majority of consumers will continue to shop for insurance regardless of auto sales fluctuations [85][86]

Core Insights - Tree.com reported a revenue of $261.5 million for the quarter ended December 2024, marking a 94.6% increase year-over-year and exceeding the Zacks Consensus Estimate by 10.91% [1] - The company's EPS for the quarter was $1.16, significantly up from $0.28 in the same quarter last year, resulting in an EPS surprise of 213.51% compared to the consensus estimate of $0.37 [1] Revenue Breakdown - Consumer revenue reached $55.60 million, surpassing the average estimate of $51.23 million by analysts, reflecting a year-over-year increase of 12.3% [4] - Home revenue was reported at $34 million, exceeding the three-analyst average estimate of $31.44 million, with a year-over-year growth of 35.5% [4] - Insurance revenue amounted to $171.70 million, significantly above the average estimate of $153.01 million, representing a remarkable year-over-year increase of 188.1% [4] Stock Performance - Over the past month, Tree.com shares have declined by 13.6%, contrasting with a 4.1% decrease in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]