Earnings Watch: LinkedIn
Estimize | Jul 30, 2015 12:38PM ET
LinkedIn Corporation (NYSE:LNKD) reports its FQ2 ’15 results after the closing bell today. The Estimize community is predicting an EPS figure of $0.35 and a revenue number of $685.93M. Wall Street analysts however, assume an EPS figure of $0.32 and forecast revenues of $681.56M.
LinkedIn has underperformed year-to-date (YTD) with a capital loss of -1.07% compared to the NASDAQ index which has appreciated 7.62%. As you can see from the chart below, LinkedIn shareholders were punished for holding the stock whilst management released the FQ1 ’15 results. Despite meeting Wall Street’s expectations, LinkedIn failed to beat the Estimize consensus, resulting in the stock getting punished the following trading day.
LinkedIn is the global leader in online professional networking and continues to experience solid user acquisition growth numbers, posting a 23% increase in cumulative members in FQ1 ’15. LinkedIn’s management have also made an effort to penetrate the online learning sector with various acquisitions including Lynda.com. Further, LinkedIn are partnering and acquiring various companies in an attempt to enhance user experience and further encourage advertisers to use their site.
The most important part to LinkedIn’s business is clearly its talent solutions segment. This segment was most recently recorded to account for 62% of total revenues for LinkedIn. This particular side of the business focuses on selling products to recruiters. The most important thing for investors heading into the result will be how this segment faired in FQ2 ’15. With a dramatic 5% fall in YoY growth in FQ1, investors will want to see a better result YoY in FQ2.
The sentiment following today’s report will likely be dictated by the talent solutions segment’s performance, investors are advised to watch this number closely and pay attention to management’s outlook for this area of the business. In addition, investors will want to hear management’s outlook for expenses and R&D costs moving forward. During the FQ1 results, investors were given a nasty surprise when management informed the market that they intended on ramping up R&D and overall expenses in order to increase the company’s salesforce.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.