LinkedIn Profit Tops Estimates, FY Outlook Buoyant; Stock Gains

(RTTNews) - LinkedIn Corp (LNKD) on Thursday reported a better-than-expected increase in fourth-quarter profit, led by growth across all segments, and at a time when its international focus gains steam.

The online professional network, which has about three-fourth of its members outside the U.S., provided an overall pale outlook for the current quarter, but detailed a buoyant full-year earnings outlook that is way ahead of Street estimates.

"The fourth quarter capped another successful year for LinkedIn, which was marked by steady member growth and strong financial results," said Jeff Weiner, CEO of LinkedIn. "We continued to make significant progress against a number of multi-year, strategic initiatives including mobile, jobs, content, and global expansion."

LinkedIn shares gained 8 percent in after-hours trade on the New York Stock Exchange, following the announcement of its earnings.

LinkedIn has been expanding internationally. The company recently ramped up its member base in China with the launch of a localized version in both simplified and traditional Chinese.

The Mountain View, California-based company posted fourth-quarter net earnings to common stockholders of $3 million or $0.02 per share compared with $3.8 million or $0.03 per share last year.

Excluding stock-based compensation expense and other one-time items, the company's adjusted earnings for the quarter were $0.61 per share compared with $0.39 per share a year ago.

On average, 34 analysts polled by Thomson Reuters estimated earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

LinkedIn, which derives revenues from job recruitment, premium subscriptions and advertising, said revenues for the fourth quarter jumped to $643.4 million from $447.2 million in the prior year. Thirty-three analysts had a consensus revenue estimate of $616.8 million for the quarter.

Revenue from the U.S. formed 60 percent of total business, while the rest came from international markets, the company said in a statement.

For the first quarter, LinkedIn expects adjusted earnings of $0.53 per share on revenues of $618 million to $622 million. Analysts currently expect earnings of $0.55 per share on revenues of $645.7 million for the quarter.

For the full year 2015, the company projects adjusted earnings of $2.95 per share on revenues of $2.93 billion to $2.95 billion. Analysts currently expect earnings of $2.73 per share on revenues of $2.94 billion for the year.

LNKD closed Thursday's regular trade at $237.97, up $5.94 or 2.56%, on a volume of 3.9 million shares. In after hours, the stock gained $18.03 or 7.62% at $256.10. In the past year, the stock has traded in the range of $136.02 - $243.25.