LinkedIn Corp. (LNKD) is set to report FQ2 2014 earnings after the market closes on Thursday, July 31st. LinkedIn is the largest social network designed specifically for professionals and networking. So far this earnings season the social networks have been on fire. Facebook, Twitter, and Yelp all posted outstanding earnings relative to their own respective expectations. LinkedIn will be the next social network to report earnings, here’s what investors are looking for.
This quarter 62 contributing analysts on Estimize.com have come to a consensus earnings expectation of 40c EPS and $514.81M in revenue compared to a consensus of 39c EPS and $511.83M from Wall Street. Over the previous 6 quarters the consensus from Estimize.com has been more accurate than Wall Street in forecasting LinkedIn’s revenue every quarter and more accurate in predicting EPS 5 times.
LinkedIn’s earnings have been extremely flat over the previous 4 quarters. This quarter there has been a huge uptick in social media companies’ earnings, in large part due to a boost in mobile advertising revenue. The consensus from Estimize is still fairly modest this quarter compared to the great reports from the other social media companies. However the range of estimates from the community reaches particularly high this quarter. A wide range of EPS estimates is often indicative of uncertainty in the market, and could mean greater volatility post earnings.
While LinkedIn’s earnings may have flattened off, revenue has been increasing quickly and steadily. Over the past year LinkedIn has been averaging year over year revenue growth of about 50%. Already this quarter we have seen breakout moves from Facebook, Twitter, and LinkedIn. The general trend is that social media platforms are starting to make a lot more money on their advertising businesses. The trend has been particularly pronounced on mobile as mobile engagement metrics have been soaring.
Estimize.com ranks and allows the sorting of analysts by accuracy. The analyst with the lowest error rate on LinkedIn is an anonymous materials sector professional who goes by the username wjbuckner. Over 2 previously scored estimates on LinkedIn wjbuckner has averaged an error rate of 2.0%. Estimize is completely open and free for anyone to contribute, and the base of contributing analysts on the platform includes hedge fund analysts, asset managers, independent research shops, non professional investors, and students.
The Estimize consensus was more accurate than the Wall Street consensus 65% of the time last quarter on the coverage of nearly 1000 stocks. A combination of algorithms ensures that the data is not only clean and free from people attempting to game the system, but also weighs past performance and many other factors to gauge future accuracy.
Contributing analysts on the Estimize.com platform are forecasting that on Thursday LinkedIn will earn a penny per share more than Wall Street is predicting and beat the Street’s revenue consensus by $3 million (<1%). The Estimize community is expecting LinkedIn to post year over year revenue growth of 42% while earnings increase by 2c per share compared to the same quarter of last year.
When LinkedIn reports after the close, reporting in-line will the Wall Street consensus will not be good enough. All of the other social media stocks are going crazy right now and LinkedIn will be expected to keep up.
Head over to Estimize.com/calendar to follow the most comprehensive earnings season calendar on the web featuring consensus estimates from Wall Street and the Estimize community.
Recommended for You
Big question remaining is how many will be grandfathered in, how many need feds' approvalUSA TODAY
These days the web is full of stories about how to massage your credit history and score to look your best to lenders. On this site and others, you’ve probably seen stories like “ 7 Fast Ways to Raise ...Money Talks News
When it's this volatile, the bears have more reason to worry.Bloomberg
May 4 -- Former Mexico President Vicente Fox says Donald Trump is "a false prophet" whose proposals will result in the loss of jobs, instead of saving jobs. He speaks to Bloomberg's Scarlet Fu at the Milken Institute Global Conference.Bloomberg Video
The 70 percent rally in crude oil prices since February lows has been largely driven by speculators, a trend that will soon end as fundamentals continue to worsenOilprice.com
Shares of mobile game developer Zynga are up around 12 percent in after-hours trading, following...Business Insider
After they retire, most people completely change some of their investment habits--and risk depleting their wealth.Kiplinger
Ever since it became a distinct possibility that Donald Trump might win the Republican presidential nomination, there have been calls from members of the Republican Party who do not consider the billionaire a real conservative for an alternative candidate. With Trump the last man standing, some…The Fiscal Times
NEW YORK (AP) — Consumer backlash is growing against Target's stance on what type of bathrooms its transgender customers and employees can use.Associated Press
A new legislative proposal wants to eliminate taxes on forgiven student loan debt.Credit.com
Betting big on millennials with active lifestyles has been a bad bet for investors thus far, Estimize reports.CNBC.com
Acadia shares have fallen significantly since the company's Nuplazid drug received FDA approval. Here's why they're worth more.TheStreet.com
In the early aughts, Aeropostale was a staple for teens. It was less expensive than its racy mall...Business Insider
Good morning! The Turkish lira recovered some of its losses after plunging by as much as 4.5% on...Business Insider
A powerful notebook/tablet hybrid like the Microsoft Surface Pro 4 can be a real advantage for many users. This guide describes its specs, who it's designed for, and why it matters.TechRepublic
Upon reaching full retirement age, typically 66, the beneficiary could file to claim Social Security, but then immediately suspend it, or ask to stop receiving the regular monthly income. Having filed, he made his spouse eligible for a "spousal benefit" that was half of the beneficiary's benefit.…U.S.News & World Report
- Advanced Direct SecuritySponsored
Secure your home for only $9/week and get a FREE wireless camera & security system valued at $850! Get a free quote. ADT Authorized Dealer
NEW YORK (AP) — Hulu is expanding its Internet TV programming with a subscription service offering a mix of live cable and broadcast options that will include news and sports.Associated Press
The Hyperloop, a vessel that will travel nearly at the speed of sound, is being built between L.A. and San Francisco. Bibop Gresta talks with us about how this will workCNBC Videos
Two top manufacturing executives are leaving Tesla Motors Inc as the Silicon Valley electric-car maker prepares to launch its first mass-market car, the Model 3, and sharply ramp up production. The departures follow a rocky production start for the company's Model X sport utility vehicle, a…Reuters
Donald Trump stands to clinch the Republican nomination and here’s what Jim Cramer thinks it could do to stocks.CNBC Videos