E-Loan (EELN) beats consensus by $0.03, stock up 14%

E-LOAN (ticker: EELN) reported Q4 results that beat analyst estimates and drove the stock up 14% in subsequent trading. Details:

Q4 Results
(all percentages changes and comparisons are year on year, unless stated otherwise)

• EPS of $0.02 beat consensus of breakeven.
• Revenue of $36.2 million, up 36%, beat consensus of $34.84 million.
• 70% of total was "diversified revenue", ie. total rev minus prime refinance mortgage, up 33%.
• 30% of total was prime refinance mortgage, up 10%. Volume decreased by 9% but revenue per loan rose by 26%.
• Home Equity revenue was $12.3 million, up 53%.
• Auto revenue was $2.8 million, up 8%.
• Refinance mortgage revenue was $11 million, up 45%.
• Direct margin -- defined as revenue minus variable and fixed operations expense - was $18.4 million, up 58%.
• Marketing expense was $11.9 million, up 24%.

Guidance

"We expect total 2005 revenues of approximately $165 million -- representing a 22 percent improvement over 2004 results. In 2005, we anticipate that diversified revenue will grow to approximately $122 million, comprising 74 percent of total revenue, and representing a 25 percent increase over our 2004 diversified revenue. We expect 2005 pre-tax EPS of approximately $0.13 per share compared to EPS of $0.01 per share in 2004."

Note: Consensus estimates were: EPS of $0.09 on revenue of $156 million.

Quick comments

• Note: revenue growth of 36% outpaced growth in marketing expense of 24%.

EELN chart below.