What to Look for in LinkedIn Earnings

By Chris Lange Updated Jan 13, 10:08AM EST · Published Apr 28, 12:25PM EDT

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What to Look for in LinkedIn Earnings — © Thinkstock

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.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.