Wedbush Previewed LinkedIn's 3Q
In a report published Monday, Wedbush analyst Michael Pachter gave a Q3 preview on LinkedIn (NYSE: LNKD).
Pachter noted that her expects Q3 results in line with Wedbush's estimates. Wedbush predicts expected revenue of $383 millon versus the consensus of $385 million and guidance of $367-373M. The analyst expects adjusted EBITDA of $93 million versus guidance of $81- 83M, and EPS of $0.43 versus consensus of $0.32. Pachter commented that LinkedIn historically beats guidance.
Wedbush reported that a potential acquisition may be likely as " LinkedIn priced a follow-on equity offering during the quarter of 5.4 million Class A shares at $223 per share for a total offering amount of roughly $1.2 billion." The analyst commented that Xing, a company similar to LinkedIn in Europe, has maintained significant market share despite LinkedIn's growth.
Investors continue to support and see growth potential. Internationally, there are over fifteen million members in Brazil and over one million in Saudi Arabia. Pachter raised concerns with the current subscription model used to maximize revenue, as "should the company show the slightest signs of slowing growth, the stock is likely to pull back sharply."
Wedbush maintained their Neutral Rating and PT of $195 with a CY14 EPS estimate of $2.47.
LinkedIn closed at $240.70 on Friday and is currently trading +2.38 percent.
LinkedIn will report Q3:13 (ending September) results on Tuesday, October 29 after market close. Investors and the general public can access the 2 p.m. PDT by dialing 914-495-8529 or via webcast at investors.linkedin.com. The conference ID is 74554060.
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