Wall Street received Linkedin Corporation’s (NYSE:LNKD) inaugural quarterly results with relief on late Thursday, as the company reported revenues above analyst estimates, earnings in line with estimates and increased its guidance for the whole year.
The networking site kept the faith that analysts had reposed in it as a `serious' social networking site, compared to Facebook, which has received a drubbing at the hands of investors.
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LinkedIn's reported earnings per share of $0.16, and revenues of $228.2 million for the June quarter, much above Street estimates of $216.5 million.
The stock which had closed down 2.23% at $93.51 yesterday soared more than 12.50 percent in the opening session.
For the third quarter the company had projected revenue of $235 million to $240 million, in-line with analyst estimates of $235.2 million.
For the whole year, LinkedIn raised its guidance, forecasting between $915 and $925 million against analyst estimates of $907.2 million.
In the real world American International Group, Inc.’s (NYSE:AIG) income rose 27 percent in the quarter to June to $2.33 billion or $1.33 a share beating analysts’ forecasts of 58 cents a share.
AIG's revenue rose 3 percent, to $17.12 billion from $16.68 billion year-ago.
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The insurer was one of many which were embroiled in the 2008 financial crisis and the U.S. government had to step in with a bailout package, which it is still paying off.
In the June quarter AIG said it had repaid all the debt it owed to the Federal Reserve, which extended a financial package worth $182.5 billion. The Fed owns about 61 percent in it.
Shares in AIG rose more than 0.50 percent to $30.99 in early trade.