LinkedIn Corp (NYSE:LNKD) second quarter earnings is expected to be “likely upside” to consensus estimates even though investors are expecting a stronger upside, says a report from Raymond James by analysts Aaron Kessler. In the previous seven quarters, LinkedIn has performed better than the high end revenue guidance by an average of $15 million and EBITDA by an average of $13 million.LinkedIn

 2Q estimates from Raymond James

For the second quarter, Kessler expect LinkedIn Corp (NYSE:LNKD) to earn revenue in the range of $359/$354 million ($12 million/$7 million upside) and $88/$81 million for EBITDA ($9 million/$2 million of upside). Depending on historical earnings and current valuation share seems to be expecting successful quarter at the present level.

Revenue is expected to come in at $358.6 million an increase of 57 percent year over year, and more than consensus of $354 million and guidance of $342-347 million. EBITDA is expected to be around $88.2 million, more than average of $81 million and guidance of $77-79 million. Non- GAAP EPS is expected to come in line with the consensus at $0.31.

LinkedIn’s talent solution segment to post impressive growth

Analyst expects Talent solutions revenue to be around $207 million, which is an increase of 70 percent year over year. Customer service customers are expected to be 20,328, including 2,190 net ads compared to 1,729 in the last quarter. Analysts are looking forward to average revenue per customer per month of $3,589, which is an increase of 1 percent over the same period last year and 2.8 percent increase in the last. Further, it is expecting that worldwide average job postings (~15-20 percent of Talent Solutions revenues) increased to an average of 231,000 in the second quarter, up 86 percent y/y and 13 percent q/q.

LinkedIn’s market solution growth to decline

Analysts further expect that a market solution growth will decline 29 percent year over year compared to 56 percent in the first quarter. LinkedIn Corp (NYSE:LNKD) is also making changes in Marketing Solutions to incorporate greater content marketing, of which Sponsored Content in the feed was recently introduced. As per the data of PC ComScore, unique investors in the United States surged 25.4 percent y/y compared to 19.6 percent in the first quarter.

Page views hiked 17.4 percent y/y compared to 16.3 percent in the first quarter. Data collected from Europe region indicate that unique visitors have increased 32 percent in the second quarter versus 31 percent in the first quarter. Additionally, page views surged 29 percent versus 16 percent in the first quarter.

 According to the report items to watch for during the earnings call will; Sponsored Updates traction, which was introduced recently to all advertisers, performance of new products like Sales Navigator and Pulse integration.

 Raymond James is maintaining a “MarketPerformrating on the stock of LinkedIn Corp (NYSE:LNKD).