LinkedIn Posts Q4 Loss, Shares Plunge 25% On Weak Outlook

(RTTNews) - LinkedIn Corp. (LNKD) on Thursday posted a loss for the fourth quarter, hurt largely by higher operating costs and one-time charges. On an adjusted basis, earnings for the quarter improved and trumped Wall Street estimates, as revenues surged 34 percent led by growth across all segments.

However, shares of the online professional network plunged a near 25 percent in after-hours trading on a poor outlook for the current quarter and full-year 2016.

Mountain View, California-based LinkedIn currently expects first-quarter adjusted earnings of about $0.55 per share and revenues of around $820 million. Analysts polled by Thomson Reuters currently estimate earnings of $0.74 per share and revenues of $866.86 million.

For the full year 2016, the company expects adjusted earnings of $3.05 to $3.20 per share and revenues of $3.60 billion to $3.65 billion. Analysts currently estimate earnings of $3.67 on revenues of $3.91 billion for 2016.

CFO Steve Sordello said, the company expects talent solutions segment revenues growth at mid-20 percent in 2016, down from about 30 percent growth in 2015. LinkedIn generates around 60 percent of its revenue from its largest division, Talent Solutions, which helps recruiters search for candidates.

LinkedIn reported fourth-quarter loss of $8.4 million or $0.06 per share, compared with last year's profit of $3.0 million or $0.02 per share.

Adjusted earnings for the quarter were $0.94 per share, up from $0.61 last year. Analysts had expected earnings of $0.78 per share for the quarter.

Revenues for the quarter grew 34 percent to $861.9 million from $643.4 million last year. Analysts had a consensus revenue estimate of $857.6 million.

Product-development costs jumped to $217.3 million from $150.3 million last year, while sales and marketing expenses increased to $291.8 million from $224.2 million last year.

LNKD closed Thursday's trading at $192.28, up $1.03 or 0.54%, on the Nasdaq. The stock, however, dropped 24.53% in the after-hours trading.