Shares of LendingTree plunged close to 8 percent after the online lending exchange reported quarterly earnings that came in 6 cents shy of Wall Street expectations.
Lending Tree reported fourth-quarter adjusted earnings per share of 84 cents on revenue of $161 million. Analysts polled by Reuters were expecting EPS of 90 cents on revenue of $150.2 million.
The company also reiterated its 2018 forecast, which may have disappointed some investors expecting a brighter outlook similar to other lenders, who are benefiting from rising interest rates and the tax cut.
"Maybe there is some sense that they didn't raise guidance, which might be a little disappointing for people who thought they might," said Kerry Rice, senior analyst at Needham. "They've had a great run."
The company also saw a significant uptick in expenses year over year, from marketing spending and tax reform. LendingTree reported a one-time, $9.1 million charge for tax-related expenses, and an additional $10 million charge for the establishment of a charitable foundation.
It was the worst one-day decline for the stock since August 2015.
"They are a generally conservative company so there is probably an upside to those numbers (guidance)," said Rice. "I look at the weakness as a buying opportunity."