Is LinkedIn (LNKD) Poised to Beat Earnings Estimates? - Analyst Blog


Professional networking company LinkedIn Corp. ( LNKD ) is scheduled to announce its first-quarter 2014 results on May 1.

It is worth noting that LinkedIn has outperformed the Zacks Consensus Estimate in two of the four preceding quarters with a positive earnings surprise averaging 69.38%. Let's see how things are shaping up for the current quarter.

Factors to Consider this Quarter

In its last reported quarter, LinkedIn's top line benefited the most from its Talent Solution and Premium Subscription businesses, which continued to grow nicely.

The company's traction in the mobile segment is also encouraging. Synergies from acquisitions are also expected to positively impact results, going forward.

We believe that LinkedIn's initiatives to increase advertising revenues through product launches and partnership programs are praiseworthy and we believe that advertisers are also taking a note of the company's growing user base. 

With a 300 million strong global user base and more than 100 million registered U.S. users, the company should be able to maintain its leading position in the professional networking space. LinkedIn's wide industry reach also enables it to capitalize on every opportunity to connect global workforce.

Moreover, international expansion remains a focal point for LinkedIn. The company recently launched a Chinese language website to expand its presence in the leading Internet market of China. Considering the growth potential in the country which has a huge Internet surfing population, LinkedIn's expansion in the country bodes well.

Other Stocks to Consider

ON Semiconductor Corp. ( ONNN ) has an Earnings ESP of +6.67% and a Zacks Rank #1 (Strong Buy).

Level 3 Communications, Inc. ( LVLT ) has an Earnings ESP of +10.71% and a Zacks Rank #1.

Advanced Energy Industries, Inc. ( AEIS ) has an Earnings ESP of +10.00% and a Zacks Rank #1.

ADV ENERGY INDS (AEIS): Free Stock Analysis Report

LINKEDIN CORP-A (LNKD): Free Stock Analysis Report

LEVEL 3 COMM (LVLT): Free Stock Analysis Report

ON SEMICON CORP (ONNN): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AEIS , LNKD , LVLT , ONNN

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