E-Loan Gains as Auto Loan Volume Rises
Even though E-Loan saw its auto loans jump 190 percent in the last quarter, the stock is still trading at less than $3.
E-Loan, Inc. gained 0.78 to 2.38 Jan. 10 after the online lending company said auto loan volume in the fourth quarter rose to a record $320 million. The Dublin, Calif.-based company said it originated 15,671 auto loans in the quarter, up 190 percent from a year earlier and 70 percent ahead of the third quarter.
E-Loan offers consumer loans and debt-management services over the Internet. The company works with lenders to provide mortgages, home equity loans, auto loans, credit cards and small-business loans.
E-Loan reported third-quarter revenue of $9 million, up from $5 million in the year-earlier quarter, along with a pro forma loss of $8.5 million, or 16 cents per share.
Last month, the company introduced a service that offers instant online decisions on home equity loans, along with a mobile notary service, which the company said allows consumers to close loans within 10 days. E-Loan also said it plans to target the growing market for home equity financing.
Steve Herz, head of auto operations at E-Loan, pointed to the fact that the company realized an increase -- in a quarter that saw overall auto industry volumes decline -- as evidence that consumers value E-Loan's "no-hassle process and lower rates."
E-Loan said it was able to increase revenue, while lowering costs. The company is "focusing efforts on converting E-Loan browsers into borrowers," said CEO Chris Larsen.
E-Loan went public in June 1999 at $14 per share. The stock ended its first day of trading at $37.
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