LinkedIn (LNKD) Stock Hammered on Lower Guidance
Shares of LinkedIn Corp. (LNKD) were trading down -52.08 or -20.66 percent to $200.05 per share in this morning's premarket after the company reported earnings and revenue late yesterday. The company reported earnings that topped analyst estimates for the first quarter, but missed revenue forecasts for the second quarter. In addition, the company cut its full year guidance. LinkedIn stock closed at $252.13 per share, down -5.02 or -1.95 in Thursday's regular trading session.
Mountain View, California based LinkedIn Corp. is a social network website that offers services to people in professional capacities.
For its first quarter of 2015, LinkedIn reported non-GAAP diluted earnings per share of +$0.57 versus +$0.38 for the first quarter of 2014. GAAP diluted earnings per share showed a loss of -$0.34 versus GAAP diluted EPS of -$0.11 per share in the same period one year ago.
Revenue for the quarter increased to $638 million in the quarter compared to $473 million in the same quarter last year, an increase of +35 percent. Analysts expected the company to report earnings of $0.56 per share on revenue of $636 million.
Jeff Weiner, Chief Executive Officer of LinkedIn said in the company's press release that, "Q1 was a solid quarter in which we made meaningful progress against our multi-year strategic roadmap. During the quarter, we maintained steady growth in member engagement while achieving strong financial results.
Steve Sordello, the company's Chief Financial Officer stated, "LinkedIn demonstrated continued solid growth during the first quarter. This performance comes amidst the backdrop of several important strategic investments to better position the business to execute on our long-term roadmap.
LinkedIn said that it expects its second quarter adjusted profit to come in at $0.28 per share, significantly lower than analyst estimates of $0.74 per share. The company's revenue guidance for the second quarter was between $670 and $675 million, also notably below analyst forecasts of $717 million. For the full year, Linked in expects an adjusted profit of approximately $1.90 per share on revenue of about $2.9 billion, significantly lower than analyst forecasts of earnings of $3.03per share on revenue of $2.98 billion.
According to the company, its recent acquisition of Lynda.com, an online educational website that prepares people for new jobs, will affect earnings for the rest of the year. LinkedIn acquired Lynda.com at the beginning of April for $1.5 billion. The deal is expected to close by the second quarter of 2015.
LinkedIn stock is taking a beating in this morning's premarket, having appreciated +60 percent for the year before this morning's routing. The company's miss on second quarter and full year guidance is the first time that the stock misses analyst forecasts since it had its initial public offering in May of 2011.
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Analyst lowered its target price on the stock from $211 per share.
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