The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LinkedIn beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margins grew, operating margins grew, net margins shrank.
LinkedIn booked revenue of $303.6 million. The 25 analysts polled by S&P Capital IQ expected revenue of $279.6 million on the same basis. GAAP reported sales were 81% higher than the prior-year quarter's $167.7 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 $0.35. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.10 for Q4 were 43% higher than the prior-year quarter's $0.07 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 88.1%, 250 basis points better than the prior-year quarter. Operating margin was 8.8%, 280 basis points better than the prior-year quarter. Net margin was 3.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $301.2 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $1.29.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 424 members out of 1,290 rating the stock outperform, and 866 members rating it underperform. Among 367 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give LinkedIn a green thumbs-up, and 270 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 $129.91.
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