This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

LinkedIn Blows Past Estimates But Tumbles on Forecast

NEW YORK ( TheStreet) -- LinkedIn (LNKD - Get Report) blew past Wall Street expectations on Tuesday, posting third-quarter profit that handily beat expectations but shares in the professional online network tumbled on the company's forecast for the fourth quarter.

The Mountain View, Calif.-based company said fourth-quarter revenue will total $415 million to $420 million, short of analysts' average estimate of $438.9 million, according to data compiled by Bloomberg. The shortfall speaks to law of large numbers. At some point, LinkedIn would be unable to sustain the level of growth that has seen revenue climb by 86% in 2012 and 114% in 2011. 

LinkedIn is expected to grow 56% in 2013, according to Bloomberg. 

As for the three-month period ending Sept. 30, LinkedIn posted earning per share of 39 cents, surpassing a 32 cent average estimate of 29 analysts. That differential amounts to a 23% surprise, which marks a low point over the past five quarters.

In the third quarter of 2012, LinkedIn's earnings per share was 102% higher than the average analyst forecast; in the fourth quarter it was 88% higher followed by the first quarter of 2013 at 45% and the second quarter of 2012 at 24%, according to data compiled by Bloomberg.

LinkedIn reported sales of $393 million, surpassing an average forecast for $385 million. Importantly, 38% of sales came from international markets with the remainder from the U.S. LinkedIn CEO Jeffrey Weiner has repeatedly stated that the company's growth will come from abroad, especially in countries with expanding middle-classes such Brazil, India and China.

Shares have gained 136% over the past 12 months, leading 10 analysts to rate the shares a "hold" compared to 15 who continue to rate the stock a "buy," also according to Bloomberg.

By Leon Lazaroff in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LNKD $207.76 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs