The 10-second takeaway
For the quarter ended Sep. 30 (Q3), LinkedIn beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins increased, operating margins dropped, net margins grew.
LinkedIn recorded revenue of $252.0 million. The 23 analysts polled by S&P Capital IQ looked for sales of $244.2 million on the same basis. GAAP reported sales were 81% higher than the prior-year quarter's $139.5 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 $0.22. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS were $0.02 for Q3 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 86.6%, 240 basis points better than the prior-year quarter. Operating margin was 2.4%, 90 basis points worse than the prior-year quarter. Net margin was 0.9%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $273.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $934.7 million. The average EPS estimate is $0.59.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 335 members out of 1,221 rating the stock outperform, and 886 members rating it underperform. Among 333 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give LinkedIn a green thumbs-up, and 269 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 $125.90.
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