LinkedIn (NYSE: LNKD ) reported earnings on Thursday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), LinkedIn beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank.
Gross margins increased, operating margins shrank, and net margins dropped.
LinkedIn reported revenue of $228.2 million. The 19 analysts polled by S&P Capital IQ looked for a top line of $216.0 million on the same basis. GAAP reported sales were 89% higher than the prior-year quarter's $121.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.03 for Q2 were 25% lower than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 86.7%, 190 basis points better than the prior-year quarter. Operating margin was 5.9%, 230 basis points worse than the prior-year quarter. Net margin was 1.2%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $235.3 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $908.1 million. The average EPS estimate is $0.69.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 283 members out of 1,159 rating the stock outperform, and 876 members rating it underperform. Among 331 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give LinkedIn a green thumbs-up, and 280 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LinkedIn is outperform, with an average price target of $125.67.
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