A slew of earnings reports are being released after the bell Thursday, including 3 well-known Internet stocks: Twitter (TWTR), LinkedIn (LNKD) and Pandora (P). While Twitter beat on both top and bottom lines, the company disappointed on expectations of slower user growth. Twitter is up 4 percent in after-market trading while Pandora shares are plummeting following a big revenue miss, light guidance and lower listening hours. LinkedIn outperformed expectations.
Twitter posted lighter-than-expected Monthly Active User numbers of 288 million in Q4 — a 20 percent gain from Q413, but only a sequential gain of 4 million users. GAAP EPS earnings was -15 cents per share, easily beating the -21 cents in the Zacks Consensus Estimate. Revenues in the quarter were up 97 percent year over year, though Twitter's guidance for Q1 of $440-450 million is lighter than the $453 million expected.
Timeline Views are growing slowly in Twitter's International market while they remained constant on a quarterly basis in the U.S. Year over year, total Reach for Twitter has grown 19.5 percent, largely due to improving growth in the International market. Twitter also has recently acquired Zipdial in India, pointing toward future upside in International for quarters to come.
LinkedIn brought in far more Q4 revenue than expected: $643 million as opposed to the $620 million in the consensus estimate. This brings total fiscal year 2014 revenue to $2.94 billion for the online job services media site. On the earnings side, LinkedIn brought in 12 cents per share on the bottom line, fully doubling the expected 6 cents per share for the quarter. LinkedIn shares are up a healthy 6.7 percent in late trading.
Pandora's miss on both the top and bottom lines — 6 cents per share in earnings and less-than-expected sales of $268 million — has contributed to the online radio station site's deep fall in after-market trading: down 22 percent and counting after a slightly down day in Thursday's regular market. But cutting Q1 forecasts in revenues to a range of $200-225 million, where the Zacks consensus was for $238 million, is the real catalyst for the Pandora downfall here.
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