Investing

Yahoo!’s (YHOO) Home Run Quarter

The market bet against Yahoo! (YHOO) today, taking the shares down over 4% to $26.69. It was a bad gamble. Yahoo! (YHOO) revenues were $1,768 million for the third quarter of 2007, a 12 percent increase compared to $1,580 million…

By Douglas A. McIntyre
Published October 16, 2007, 3:42pm ET · 1 min read

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The market bet against Yahoo! (YHOO) today, taking the shares down over 4% to $26.69. It was a bad gamble.

Yahoo! (YHOO) revenues were $1,768 million for the third quarter of 2007, a 12 percent increase compared to $1,580 million for the same period of 2006. Revenues excluding traffic acquisition costs ("TAC") were $1,283 million for the third quarter of 2007, a 14 percent increase compared to $1,121 million for the same period of 2006. Wall St expected Yahoo!  $1.24 Billion in revenues (ex-TAC).

Operating income for the third quarter of 2007 was $150 million, a 26 percent decrease compared to $202 million for the same period of 2006.

Net income for the third quarter of 2007 was $151 million or $0.11 per diluted share compared to $159 million or $0.11 per diluted share for the same period of 2006. Analysts were looking for a $0.08 EPS figure.

For the final quarter of the year, Wall St. is hoping for $0.12 EPS on $1.37 Billion revenues (ex TAC). Yahoo! is forecasting $1,35 billion to $1.45 billion, so it should outperform expectations.

The market obviously loved the numbers, sending Yahoo! shares up 8% after hours.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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