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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends LinkedIn. The Motley Fool owns shares of LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.