Yahoo! Plugging Along... Sort Of (YHOO)

Yahoo! Inc. (NASDAQ: YHOO) gave earnings after the close today that really offers no great jumping point on the first look for new buy-ins nor for new sell-outs.  The number-two search provider said that advertising weakness lifted in the last quarter and it posted $0.11 EPS, but said that it would have made $0.15 EPS had it not been for certain charges.  Revenue on an ex-TAC basis fell to $1.26 billion versus $1.38 billion a year ago.  Thomson Reuters had estimates pegged at $0.11 EPS and $1.23 billion in revenues.  Total revenue including traffic acquisition costs fell by just over 4% to $1.73 billion, above its forecast of $1.6 billion to $1.7 billion offered a quarter ago. The revenue figure was down 8.5% on an ex-TAC basis.

These charges were due to its deal with Microsoft and due to restructuring items, so you will have to decide for yourself how much these should be considered ‘one time items’ as the company claims.

Company owned and operated ad display revenues grew 26%, while the same set of search ad revenues rose 4%.  Its marketing services revenue was down 4% and fee revenue was down 7%.

The company gave guidance for the current quarter of $1.575 billion to $1.675 billion with income from operations of $90 million to $110 million.

Yahoo! closed up 0.8% at $15.99.  The stock initially fell 2% but shares at 4:35 PM EST are up 1% at $16.15 in the after-hours session.  Unfortunately, today and tomorrow may depend more upon Carol Bartz’ body language and tone  more than upon the review of data and advertising.

JON C. OGG