![]() Prior to Microsoft's announcement of its acquisition of LinkedIn, the social network company's shares were trading at 131.08 on June 10, 2016. LinkedIn's focus on sponsored content will impact short-term revenue growth in favor of the long term At such time, LinkedIn CFO, Steve Sordello, said: consensus estimates of $0.75/share on revenues of $868.3 million. However, LinkedIn provided a future outlook below expectations, as it announced it expected net earnings of $0.55/share on revenues of $820 million for Q1 2016 vs. Such drop materialized despite LinkedIn announcing net earnings of $0.94/share for Q4 2015 beating consensus estimates of $0.78/share, and revenues of $862 million beating consensus estimates of $558. On February 5, 2016, LinkedIn shares dropped by over 43.6% in a single day, from 192.28 to 108.38, a drop of almost $94, erasing over $11 billion in market capitalization. However, if LinkedIn had not been acquired by Microsoft, what effect would such earnings have had on LinkedIn's stock price? LinkedIn stock price 5-year chart - Source: Yahoo FinanceĪs LinkedIn is being acquired by Microsoft for $26.2 billion ($196/share), LinkedIn shares had a muted reaction in the after-market hours following earnings release. Finally, Premium Subscriptions revenue increased 21% year-over-year to $155 million, beating consensus estimates of $150.5 million. Marketing solutions revenues increased 29% year-over-year to $181 million, beating consensus estimates of $168.2 million. Talent Solutions revenues increased 35% year-over-year to $597 million, beating consensus estimates of $576.3 million. Meanwhile, revenues came in at $933 million, an increase in excess of 31% over same quarter last year, and exceeding consensus estimates of $898 million.Īll of LinkedIn's business lines recorded impressive results. Compared to same period one year ago (where LinkedIn had net earnings of $0.55/share), LinkedIn's latest net earnings results represent an increase of 105%. ![]() consensus estimates of $0.78/share, a beat by a whopping $0.35/share. Net earnings for the quarter ending in June 2016 came in at $1.13/share vs. LinkedIn announced its earnings after the market closed on, shattering all expectations. Now that LinkedIn has announced its earnings, our assessment is confirmed. ![]() ![]() In a recent article we published on prior to LinkedIn's ( LNKD) latest earnings announcement, "Microsoft's rebirth could boost shares by more than 20%", we had stated that we believed that Microsoft's ( NASDAQ: MSFT) purchase of LinkedIn was a bargain. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |