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Friday, August 2, 2013 - 7:08pm
NEW YORK (CNNMoney) — LinkedIn's shares rallied Friday after the career-oriented social media company raised its revenue guidance, assuring investors its growth is back on track.
The company also beat forecasts for both earnings and revenue in the second quarter.
But this time LinkedIn raised its revenue guidance for the year, saying it now expects to bring in between $1.455 billion and $1.475 billion, up from its May target of between $1.43 billion and $1.46 billion. The company posted 2012 revenue of $972 million.
It also said third-quarter revenue would be between $367 million and $373 million, which would be up 45% to 48% above year-ago results.
Three months ago, LInkedIn also beat quarterly earnings and revenue forecasts, but investors sent shares lower because the company trimmed its revenue guidance.
The company has beat revenue forecasts every quarter since its 2011 initial public offering and blown away earnings estimates in all but one quarter. So analysts are already projecting results for LinkedIn above the company's guidance. The third-quarter revenue is forecast to be $383 million, while they're expecting $1.5 billion for the full year.
In the second quarter, LinkedIn's operating income was $44.5 million, up 146% from a year earlier, while revenue climbed 59% to $363.7 million. Both easily topped forecasts and the company's earlier guidance.
Shares of LinkedIn have rebounded since the May sell-off and were already up 85% on the year through Thursday's close. Shares rose more than 9% in early trading Friday.