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LinkedIn third quarter blows past analyst estimates; shares up 5%

November 01, 2012|By Jessica Guynn
  • Reid Hoffman, co-founder and chairman of LinkedIn, left, and Chief Executive Jeffrey Weiner, center, stand with traders on the floor of the New York Stock Exchange during the company's initial public offering of stock.
Reid Hoffman, co-founder and chairman of LinkedIn, left, and Chief Executive… (Michael Nagle / Bloomberg )

LinkedIn has been billed as the anti-Facebook. And its third-quarter earnings are certainly getting a very un-Facebook-like reception on Wall Street.

LinkedIn shares, which closed at $106.85, up 8 cents, jumped 5% in after-hours trading Thursday after the professional networking company blew past analyst forecasts, making a profit and growing revenue faster than expected.

The Mountain View, Calif., company said it earned $2.3 million, or 2 cents a share, in the third quarter. Adjusted earnings were 22 cents a share, double what analysts had expected.

Revenue leapt 81% to $252 million from $140 million. Analysts had expected $245 million.

LinkedIn is forecasting revenue of $270 million to $275 million in the fourth quarter, in line with analyst expectations of $272 million.

For the full year, LinkedIn is expecting revenue of $939 million to $944 million, well above Wall Street estimates of $934 million.

"We expect a strong finish to the year," LinkedIn Chief Financial Officer Steve Sordello said in a statement.

Investors have resisted the hype surrounding a new crop of social networking companies after Facebook's botched initial public stock offering in May. That IPO performed in sharp contrast to LinkedIn's scorcher a year earlier.

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Follow me on Twitter @jguynn

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