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.
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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