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
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