After the bell Thursday,
) reported its fiscal 4th quarter and full-year numbers. And
while the professional Internet media firm topped estimates on
revenues, it was an earnings miss on the bottom line. LNKD shares
are sinking like a stone in the after-market.
LINKEDIN CORP-A (LNKD): Free Stock Analysis
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Earnings of 5 cents per share (before non-recurring items,
stock-based compensation and amortization) missed the Zacks
Consensus Estimate of 8 cents. Yet revenues of $447.2 million in
the quarter topped the Zacks Consensus Estimate of $440 million.
LinkedIn's 277 million members overall was more than analysts had
expected. Talent Solutions, which make up over half the company's
total business, increased 53% year over year, and Marketing
Solutions and Premium Subscriptions also demonstrated healthy
year over year growth.
But the guidance? That's another story.
Both for fiscal Q1 and full-year 2014, LinkedIn low-balled their
estimates well below where we anticipated guidance would be.
While the company estimates revenues between $455-460 million
next quarter -- a steady improvement from Q4 -- guidance is lower
than the Zacks Consensus Estimate by $7 million. Full-year
guidance of $2.02-2.05 billion is similarly down from the Zacks
estimate of $2166 million we were expecting.
So now analysts will get busy downwardly revising estimates,
which will likely keep LinkedIn a Zacks Rank #5 at least a little
while longer. But first, the after-market is letting LinkedIn
know how it feels about revenue projections like these, and the
results aren't pretty: LNKD shares are down around 10% just since
the earnings announcement. In regular-day trading LinkedIn was up
4.24%; apparently investors thought the company's report was
going to be a lot better received than this.
As we saw with
) yesterday failing to reach an expected growth target and seeing
the stock get punished in late trading, so we see here today with
LinkedIn not expecting to keep up its growth trajectory in the
current year. Perhaps much was based on some pretty lofty
expectations -- speaking of, LinkedIn's market cap is the very
definition of a lofty expectation -- and cooler heads will
prevail once everything is sorted out. But in the meantime, if
you're linked to LinkedIn, you're probably feeling a little
dragged down right now.