LinkedIn’s sales outlook falls short again

SAN FRANCISCO — LinkedIn Corporation forecast 2014 revenue below Wall Street’s expectations on Thursday, underscoring concerns about its ability to sustain its rapid growth and helping to drag its shares more than 3 percent lower.

The social networking brand, which is geared toward connecting professionals with employers, forecasts revenue between $500-$505 million this quarter, compared with an average forecast of $505.1 million.

For the full year of 2014, LinkedIn expects sales between $2.06 and $2.08 billion — up from a previous forecast, but still lacking behind analysts’ $2.11 billion target.

Its shares slid 7.12% to $154.10 in after hours trading after reporting earnings.

LinkedIn’s weak outlook overshadowed a higher-than-expected 46 percent increase in first-quarter revenue to $473.2 million, compared with the average analysts’ expectation of $466.6 million.

The company also posted non-GAAP earnings of 38 cents a share, better than the 34 cents expected.

Source: Reuters

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