Linkedin Corp Third Quarter Earnings Sneak Peek

Linkedin Corporation (NYSE:LNKD) will unveil its latest earnings on Thursday, November 1, 2012. LinkedIn is a professional network on the Internet with more than 90 million members in over 200 countries and territories.

Linkedin Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 5 cents per share, a wider loss from the year-earlier quarter net loss of one cent. During the past three months, the average estimate has moved down from 2 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 3 cents during the last month. Analysts are projecting profit to rise by 46.2% compared to last year’s 7 cents.

Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of 4 cents per share versus a mean estimate of net income of 5 cents per share. In the first quarter, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 74.9% in revenue from the year-earlier quarter to $243.9 million.

A Look Back: In the second quarter, profit fell 37.7% to $2.8 million (3 cents a share) from $4.5 million (4 cents a share) the year earlier, missing analyst expectations. Revenue rose 88.5% to $228.2 million from $121 million.

Stock Price Performance: Between September 28, 2012 and October 26, 2012, the stock price dropped $15.85 (-13.2%), from $120.40 to $104.55. The stock price saw one of its best stretches over the last year between January 9, 2012 and January 19, 2012, when shares rose for eight straight days, increasing 16.4% (+$10.45) over that span. It saw one of its worst periods between November 17, 2011 and November 29, 2011 when shares fell for eight straight days, dropping 21.2% (-$15.85) over that span.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased more than twofold in the fourth quarter of the last fiscal year and more than twofold in the first quarter before climbing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.71 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.96 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.6% to $299.9 million while assets rose 3.8% to $811.9 million.

Analyst Ratings: There are 15 out of 24 analysts surveyed (62.5%) rating Linkedin a buy. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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