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Friday, November 2, 2012

Big Earnings Gainers: Linkedin Corporation, Starbucks Corporation – LNKD, SBUX


Linkedin Corporation (NYSE:LNKD) seems to be the only social networking company which has been outperforming. The stock soared 8.41% in the pre-open session as the company reported solid Q3 earnings late Thursday, which easily topped analysts’ estimates, thanks to increased ad rates and revenue from hiring services, which saw a solid boost.

Moreover, the company boosted the full year guidelines and now Linkedin projects to generate revenue of $939 million and $944 million, well above from its past outlook of $915 million to $925 million.
For the latest quarter, the company earned $2.3 million, or 2 cents a share on revenue of $252 million, signifying a 81% year over year jump in revenue. On an adjusted basis, the company would have earned 22 cents a share.

Analysts were estimating the company to earn 11 cents on revenue of $244.2 million.

There is further good news, the company’s Chief Executive Jeff Weiner claimed on a conference call on Thursday that the online service hold 187 million members and members are more busy on the website compared to the past.

Starbucks Corporation(NASDAQ:SBUX) is another stock, which has been showing buying activities in  the pre-open session as the world's biggest coffee chain decided to raise its full year earnings forecast on the back of strong quarterly earnings in the latest quarter.

The company now projects to earn $2.06 to $2.15 a share, compared to its earlier guidance of $2.04 to $2.14 a share. Moreover, the company also lifted its target to open global net new stores by 1,000 to 1,300.
For the latest quarter, the company earned $359 million, or 46 cents a share on revenue of $3.36 billion, signaling a 0.10% y-o-y increases in net income and 11% y-o-y rise in revenue.

The company showed a solid performance in terms of same store growth, which was up 6% for the past 13 months, contributed by 5% jump in footfall and another 1% came in from rise in average spending per visit.
Shares of SBUX are up 8.62% in the pre-market session.

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