NextCard sees profits in 2001, big growth in 2002 and 2003

NextCard (Nasdaq: NXCD) ran up 33 percent Thursday after announcing earnings guidance for 2002 that doubles previous expectations. The company also will hit profitability earlier than expected.

Shares in the issuer of consumer credit on the Internet were up 2.63 to 10.69.

The company held its first annual Investor Day Thursday, during which it provided an update on growth strategies. NextCard announced that it expects revenues of $1 billion in 2003, implying a three-year annual revenue growth rate of 75 percent.

NextCard also said it expects earnings of $150 million, or $2.83 per share, in 2003, and increased earnings to $75 million for 2002. The company also announced it expects that assets under management will exceed $6 billion by the end of 2003, with a customer base of over 3 million accounts.

The 2002 earnings guidance of $75 million represents a 50 percent increase from the previous guidance of $50 million. The newly initiated 2003 guidance of $150 million implies 100 percent growth in earnings from 2002 to 2003.

The company now expects to reach profitability by the end of 2001, a year earlier than planned.