LinkedIn (LNKD) released its fourth quarter financial results after the closing bell on Thursday. Here’s what the results mean for mutual fund investors.
Inside LNKD's Results
The company reported earnings of $3 million, or 2 cents per share, compared to last year’s earnings of $3.8 million, or 3 cents per share. Adjusted earnings were 61 cents per share – above analysts’ view of 53 cents per share.
Revenue increased to $643.4 million from $447.2 million last year. Analysts expected to see revenue of $616.8 million.
For the first quarter, the company expects to see adjusted EPS of 53 cents and revenue between $618 million and $622 million. Analysts expect to see EPS of 55 cents and $645.7 million in revenue.
For FY2015, the company expects EPS of $2.95 and revenue between $2.93 billion and $2.95 billion. Analysts expect to see EPS of $2.73 and $2.94 billion in revenue.
Dominate Player in Career Space, but Risk Remains
Shares of LinkedIn surged 14% on Friday morning, sending the stock to all-time-highs. The company is the industry leader in the career space, and has a profitable subscription business. Despite its momentum, risk that LinkedIn could face disruption from an upstart, similar to what occurred to one time industry leader Monster Worldwide (MWW), is a constant worry.
Shares of LNKD are currently trading at 74x 2015 earnings estimates, which is a fairly decent valuation based on its 44% sales growth. This stock is more ideal for aggressive investor who are willing to watch the stock each quarter.
Mutual Funds to Watch
Investors interested in LNKD may also consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in the company.
|VTSMX||Vanguard Total Stock Market Index Fund||1.47%|
|MLAAX||MainStay Large Cap Growth||1.34%|
|PRGFX||T. Rowe Price Growth Stock||1.24%|
The Bottom Line
The funds above are a great way for investors to gain exposure to a diverse bundle of securities and industries. Investors interested in LNKD may also be interested in Twitter (TWTR) or Facebook (FB).