LinkedIn's forecast sends its stock plummeting

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Posted: Friday, May 3, 2013 12:00 am

MOUNTAIN VIEW, Calif. (AP) — LinkedIn Corp. continued its uninterrupted streak of beating analysts' expectations with its quarterly results on Thursday as earnings and revenue soared, but its outlook for the rest of the year disappointed Wall Street and its stock plunged 11 percent in extended trading.

LinkedIn Corp. earned $22.6 million, or 20 cents per share, in the first quarter. That's up from $5 million, or 4 cents per share, in the same period a year earlier. Adjusted earnings were 45 cents per share in the latest quarter, well above analysts' expectations of 30 cents. Revenue grew 72 percent to $324.7 million from $188.5 million. Analysts, on average, had expected revenue of $317.6 million

LinkedIn went public in May 2011 at a share price of $45. Its stock has soared, closing above $200 for the first time Thursday, since as the company has consistently beat expectations with its results.

LinkedIn's forecast for the current quarter and the full year implied that its winning streak could end. The company said it expects revenue between $342 million and $347 million for the April-June period. Analysts had forecast $360 million.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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