LinkedIn Corp, Starbucks Corporation, Groupon Inc: Earnings Preview

LinkedIn Corp, Starbucks Corporation, Groupon Inc: Earnings Preview

Three companies, LinkedIn Corp (NYSE:LNKD), Starbucks Corporation (NASDAQ:SBUX) and Groupon Inc (NASDAQ:GRPN) are scheduled to report their September quarter results on Thursday, Oct.30 after the market close. Groupon shares have tumbled 48% this year so far. Starbucks is down about 2% year-to-date, while LinkedIn stock has declined 8% in 2014. Let’s have a look at what analysts expect from each of them after the market close today.

LinkedIn set for solid Q3 results

BGC analyst Colin W. Gillis said in a research note that he expects the company’s Q3 results to exceed management guidance. The research firm calls for revenue of $562 million, up 43.1% from last year. Gillis forecasts adjusted EPS of 52 cents for the quarter, a substantial increase from 39 cents in the same quarter last year. Analysts polled by FactSet call for $558 million in revenue and $141 million in EBITDA. LinkedIn has guided Q3 revenue between $453 million and $547 million, and EBITDA between $134 million and $136 million.

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BGC forecasts Q3 Talent Solutions revenue of $343 million, an increase of 52.7% from the previous year. Marketing Solutions revenue is expected to rise 27.1% to $112.5 million, while Premium Subscriptions are expected to generate $106.8 million, an increase of 33.9% from last year. LinkedIn is expected to keep adding new members at a rapid pace. Gillis expects the number of active members to rise 30.5% to 338 million.

Investors expect Groupon to make some progress

Groupon stock is down close to 50% this year. Investors and analysts expect the company to make some progress towards its goal of double-digit YoY billings growth in North America. Sterne Agee said in a research note that it expects Groupon to generate $746 million in revenue, slightly lower than the consensus estimate of $749 million. The Chicago-based company has guided Q3 revenue of $720 million to $770 million.

Sterne Agee analysts project adjusted EBITDA of $67 million, which is at the higher end of the company’s guidance of $50 million to $70 million. The research firm expects 30% billings growth. International billings are expected to increase 49%, but North America growth is likely to be a modest 11%. Local gross billings in North America are expected to increase only 7%.

For Starbucks, effects of price hike to be in focus

Analysts on average expect Starbucks to report 74 cents in fourth quarter EPS, a 23.5% growth from last year. Revenue is expected to jump 11.6% YoY to $4.23 billion. Investors will focus on the company’s comments about the recent increase in coffee prices and how it will affect its margins going forward. Investors will also be looking for commentary on how the new Fizzio handcrafted sodas fared since their introduction in June. There have been reports that the carbonated beverage hasn’t done well, fueling speculations that the company’s results may fall short of expectations.

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