Live Oak: Loan Growth Rose, but EPS Fell

Live Oak Bancshares (NYSE:LOB), known for its innovative online small business lending platform, released its Q4 2024 results on Jan. 22. Diluted earnings per share (EPS) came in at $0.22, missing analysts' expectations of $0.53 by a wide margin. Revenue totaled $128 million, falling short of the consensus forecast of $131 million. Those underwhelming results raised concerns about the bank's credit quality and macroeconomic pressures, despite its notable growth in loan and deposit metrics.

Source: Analysts' estimates for the quarter provided by FactSet.

Live Oak Bancshares operates a technology-driven platform for small business lending across the United States. It focuses on government-guaranteed loan programs, primarily those backed by the U.S. Small Business Administration and the Department of Agriculture. This approach minimizes its credit risk and enhances the company's appeal to small business borrowers. Furthermore, Live Oak distinguishes itself by not maintaining traditional branch locations, instead utilizing a robust technology-based lending platform.

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Source Fool.com