Linkedin Stock Analysis: Here’s What Guidance Suggests

The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.

LinkedIn (NYSE:LNKD) Q4 beat driven by Marketing Solutions. Revenue was $304 million, compared with our estimate of $282 million, consensus of $280 million, and guidance of $270 – 275 million. Talent Solutions revenue was $161 million, compared to our estimate of $161 million, Marketing Solutions revenue was $83 million, compared to our estimate of $66 million, and Premium Subscriptions revenue was $59 million, compared to our estimate of $56 million. Non-GAAP EPS was $0.35, versus our estimate of $0.24, and consensus of $0.19. LNKD does not provide EPS guidance.

Management provided FY:13 guidance for revenue of $1.41 – 1.44 billion and adjusted EBITDA of $315 – 330 million. LNKD provided Q1:13 guidancefor revenue of $305 – 310 million and adjusted EBITDA of $67 – 69 million.

Increasing our FY:13 estimates for revenue to $1.49 billion from $1.45 billion and for EPS to $1.86 from $1.33 to reflect strong Q4 results and guidance.

Better than expected guidance suggests…