What to Look for in LinkedIn Earnings
LinkedIn is set to report its first-quarter financial results after the markets close on Thursday.
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LinkedIn Corp. (NYSE: LNKD) is set to report its first-quarter financial results after the markets close on Thursday. Thomson Reuters has consensus estimates of $0.60 in earnings per share (EPS) on $828.47 million in revenue. That would be up from the EPS of $0.57 and $637.69 million in revenue reported in the same period of last year.
This high-profile tech stock was a momentum trader’s dream for a few years. LinkedIn operates an online professional network worldwide. The company, through its proprietary platform, allows members to create, manage and share their professional identity online; build and engage with their professional networks; access shared knowledge and insights; and find business opportunities.
The company also offers LinkedIn mobile applications across a range of platforms and languages, including iOS for iPhone and iPad, Android, BlackBerry, Nokia Asha and Windows Mobile, as well as a public website that allows developers to integrate its content and services into their applications.
While the company posted adequate fourth-quarter results, the guidance it offered was far below Wall Street estimates and the stock was crushed — to the tune of almost 44%. Stifel analysts held their ground, and while acknowledging that the sell-off was painful, they remind investors that the company is notorious for giving very conservative guidance. They feel that the wash-out in the shares does give investors a solid opportunity for the balance of 2016 and that LinkedIn is narrowing its focus on high-value, high-impact initiatives and jettisoning other investments that do not provide acceptable returns.
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So far in 2016, LinkedIn has vastly underperformed the broad markets, with the stock down 47%. Over the past 52 weeks, the stock is down about 54%.
Shares of LinkedIn were trading up 4.4% at $124.07 on Thursday, with a consensus analyst price target of $164.28 and a 52-week trading range of $98.25 to $258.39.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
