LinkedIn Corp Downgraded Ahead Of Earnings

LinkedIn Corp Downgraded Ahead Of Earnings

LinkedIn is scheduled to release its next earnings report after closing bell. The social network impressed Wall Street with its last set of earnings results, but some analysts don’t think that will happen again. The stock prices of several companies have plunged recently thanks to weak earnings guidance for the current quarter and fiscal year.

Play Quizzes 4

Sign up for our free newsletter

At least one firm is warning about LinkedIn’s 2015 guidance and has downgraded the company’s stock going into tonight’s report

Morningstar Investment Conference: Fund Manager Highlights Personalized Medicine, Energy Security

Clint Carlson Far ViewHedge fund managers go about finding investment ideas in a variety of different ways. Some target stocks with low multiples, while others look for growth names, and still others combine growth and value when looking for ideas. Some active fund managers use themes to look for ideas, and Owen Fitzpatrick of Aristotle Atlantic Partners is Read More

BGC downgrades LinkedIn

The strengthening of the U.S. dollar has plagued most U.S.-based companies, and the same is expected to be true of LinkedIn, according to BGC analyst Colin Gillis. He made this observation in his report dated Feb. 4. He downgraded the company from Buy to Hold and has a $230 per share price target on the stock. He also says he remains mostly positive on LinkedIn’s business model, however.


The analyst expects the social network’s December quarter results and 2015 guidance will disappoint because of currency exchange issues. He points out that about 60% of LinkedIn’s revenue comes from the U.S., 7% comes from the other Americas, 25% comes from the Middle East, Europe and Africa, and 8% comes from the Asia Pacific region.

LinkedIn usually guides conservatively

Gillis also pointed out that LinkedIn management usually guides conservatively to engineer an earnings beat. This is obvious by the company’s beats in both adjusted earnings per share and revenue in the last eight consecutive quarters.

Even though much of Wall Street already knows the company guides conservatively, he still thinks investors will be disappointed by the guidance provided in tonight’s report.

Expectations for LinkedIn’s earnings report

The analyst reminds us that LinkedIn guided for revenue of between $600 million and $605 million for the December quarter and adjusted EBITDA of between $153 million and $155 million. Gillis’ estimate is $613 million, compared to the consensus estimate of $617 million.

His adjusted earnings per share estimate is 55 cents, which is just slightly ahead of the consensus estimate of 53 cents per share. Gillis estimates Talent Solutions revenue of $370 million and $121 million in revenue from Premium Subscriptions for the quarter.

The analyst points out that shares of LinkedIn declined by more than 6% last year after the social network’s December quarter. As of this writing, shares of LinkedIn were up 0.42% at $233 per share.


Updated on

Michelle Jones is editor-in-chief for and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at
Previous article Albert Edwards: Japanisation Of Euro Has Occurred, U.S. Next
Next article Staples, Office Depot Merger: Market Disappointed With Some Aspects

No posts to display