Yahoo! Earnings Mostly Good Enough (YHO)
Yahoo! Inc. (NASDAQ: YHOO) has issued its earnings. The lagging search and online content giant reported earnings of $0.17 EPS on $1.6 billion in revenues, but traffic acquisition costs were $476.8 million in the quarter. Estimates were $0.15 EPS and…
For the coming quarter, the company is targeting revenue of $1.125 to 1.225 billion versus the Thomson Reuters figures of $1.26 billion. The pre-TAC revenue appears to be guided to $1.4 to $1.53 billion.
The company’s description of the quarter is a “solid quarter with good display advertising revenue growth” that was followed by operating income growth and margins of nearly double a year ago.
The company also noted that it had “dramatically” increased its share buybacks and it now has acquired more than 7% of the common shares in 2010 alone. the company also ended the quarter with some $3.46 billion in cash and equivalents. If the company keeps buying back stock at that rate, it will be a private company in roughly 10 years.
Yahoo! closed down 2.7% at $15.49 on the day, but the stock is up marginally around $15.53 in the after-hours session. This one looks ‘good enough’ or at least it would had the shares not been up around persistent buyout rumors and reports of buyouts being considered.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.