On Deck Rises Most in Eight Months After Raising Revenue Outlook

  • Second-quarter loss was smaller than analysts estimated
  • JPMorgan says On Deck’s origination growth will boost stock

On Deck Capital Inc., the arranger of small-business loans over the internet, rose the most in almost eight months after boosting its revenue forecast and reporting a smaller loss than analysts estimated.

The shares climbed 14 percent to $5.90 at 10:53 a.m. in New York, the most since Dec. 18. On Deck’s second-quarter net loss was $18.7 million, the New York-based company said Monday in a statement after the close of regular trading. The quarterly loss adjusted for some items was 20 cents a share, less than the 24-cent average of 15 analysts surveyed by Bloomberg.

“On Deck had strong top-line performance, as originations and yield proved robust,” Richard Shane, an analyst at JPMorgan Chase & Co., said in a note to clients.

On Deck said it expects full-year gross revenue of $280 million to $290 million, up from a May 2 forecast of $278 million to $288 million. The firm originated a record $590 million of loans in the second quarter, 41 percent more than in the same period last year.

On Deck climbed in December after JPMorgan said it was working with the company to provide loans to small businesses. Its shares have slumped 43 percent this year amid increased competition and questions about whether regulators will clamp down on the business model.