LinkedIn Corp (LNKD) Earnings: What To Expect

0
LinkedIn Corp (LNKD) Earnings: What To Expect

LinkedIn Corp (NYSE:LNKD), the leading professional social networking, is scheduled to report its  financial results for the second quarter of the current fiscal year on Thursday, August 1 after the market close.

Play Quizzes 4

LinkedIn Corp (LNKD) Earnings: What To Expect

Hours prior to reporting its earnings results, the stock price of LinkedIn Corp (NYSE:LNKD) gained by nearly 4% to around $210.93 per share at around 12:21 in the afternoon in New York.

London Value Investor Conference: Joel Greenblatt On Value Investing In 2022

The first London Value Investor Conference was held in April 2012 and it has since grown to become the largest gathering of Value Investors in Europe, bringing together some of the best investors every year. At this year’s conference, held on May 19th, Simon Brewer, the former CIO of Morgan Stanley and Senior Adviser to Read More

Morgan Stanley analysts Scott Devitt and John Egbert noted that LinkedIn Corp (NYSE:LNKD) stock declined by almost 20% intra-quarter due to concerns over declining revenue growth in its marketing solutions. The stock managed to regain its value as investors seemed to become more comfortable with the company’s marketing transition.

LinkedIn losing money by catering to big customers instead of providing service

Devitt and Egbert projected that LinkedIn Corp (NYSE:LNKD) revenue will increased by 55% year-over-year to $353 million. Their estimate is approximately 2% higher than the midpoint guidance at $342 million to $347 million revenue.

According to the analysts, the company is expected to decline by around 40% year-over-year because of its transition from large customized deals to more scalable marketing products.

Devitt and Egbert estimated that LinkedIn Corp (NYSE:LNKD) will be able to generate $83 million adjusted EBITDA at approximately 24% margin, which is higher than the consensus estimate of Wall Street analysts. It is also above the high-end guidance of the company at $77 million to $79 million adjusted EBITDA.

LinkedIn Corp (NYSE:LNKD) is expected by the Devitt and Egbert to generate $0.32 earnings per share (Non-GAAP) compared with $0.30 EPS consensus expectation of Wall Street analysts for the second quarter.

According to the analysts, the continued momentum of talents solutions of the company could drive an upside to their $200 million estimate. Devitt and Egbert noted that the page views of LinkedIn Corp (NYSE:LNKD) at 600 million exceeded their projection. According them, the outperformance could yield an upside to their $85 million estimate for the marketing solutions.

For the third quarter, the analysts projected that LinkedIn Corp (NYSE:LNKD) will be able to achieve a revenue of $370 million to 375 million below to or $375 million to $380 million in line with their $379 million revenue estimate. Its 3Q adjusted EBITDA is projected to be around $91 million at 24% margin and non-GAAP EPS of $0.35.

 

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Hurrah For Hollywood, GDP Gains Nearly Half A Trillion In A Single Day
Next article FBI Arrests Two Men For Running $100M Ponzi Scheme

No posts to display