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LinkedIn Guidance for Fiscal 2015 Trumps Mixed Guidance for First Quarter
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LinkedIn Corp. (NYSE: LNKD) has now reported its fourth-quarter results. The social media and jobs services player for professionals reported quarterly earnings of $0.61 per share on a revenue gain of 44% to $643 million. Thomson Reuters had its consensus estimates at $0.53 in earnings per share (EPS) and $616.8 million in revenues. LinkedIn’s numbers for the same quarter a year ago were $0.39 EPS and $447.2 million in revenues.
The first question on top of major growth is whether this was good enough. As a reminder, analysts and investors were paying just over 85 times expected 2015 earnings per share ahead of this report.
Linked in did offer up guidance. Revenue for the first quarter was put in a range between $618 million and $622 million, versus a Thomson Reuters consensus estimate of $645.7 million. Adjusted EBITDA is expected to range between $152 million and $154 million. Non-GAAP EPS is expected to be approximately $0.53, versus a consensus of $0.55 in EPS.
For 2015, LinkedIn’s guidance is for revenue to be between $2.93 billion and $2.95 billion, versus $2.94 billion expected by Thomson Reuters. Adjusted EBITDA is expected to be approximately $785 million. Non-GAAP earnings are being put at $2.95 per share, above the $2.73 EPS estimate from Thomson Reuters.
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Highlights of revenue by unit were as follows:
Analysts had been positive on LinkedIn ahead of its earnings report. Goldman Sachs recently added the jobs and social media player to the prized Conviction Buy List with a $280 price target, and J.P. Morgan recently raised its price target up to $253.
LinkedIn shares were up by 2.5% to $237.97 in regular trading on Thursday. Its 52-week range is $136.02 to $243.25. The consensus price target from analysts ahead of earnings was roughly $254.
Shares of LinkedIn were indicated up 5% initially around $250 in the after-hours trading session after its earnings report. As a reminder, that is very close to the consensus analyst target price.
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