Technology

Alibaba Likely to Dominate Q2 Earnings From Yahoo! (Updated)

Yahoo! Inc. (NASDAQ: YHOO) is set to report its second-quarter results after the close of trading on Tuesday. The online portal and destination is still officially considered to be in a turnaround. Many analysts and investors have been critical of Marissa Mayer’s efforts to date, but the rise in the stock price prior to 2014 was massive.

Please note that this report has been updated to include WhisperNumber.com forecasting (see blow).

UPDATE: Also, here is the post-preview earnings report from Yahoo! that includes the after-hours reaction.

What is obvious is that all eyes will be focused on Yahoo’s external gains from the Alibaba IPO. After that, investors will probably digest the internal metrics of the company and they will decide whether Mayer’s string of more hip acquisitions will lead to revenue growth ahead. We also will be paying attention to how its relationship is going with Microsoft, now that Satya Nadella is fully in control of the company.

Estimates are $0.38 earnings per share (EPS), or up three cents from last year, and revenue growth of 1.2% to $1.08 billion. While Yahoo has more than doubled under Marissa Mayer’s tenure, the stock is actually down over 11% so far in 2014. Next quarter estimates are $0.40 EPS and $1.1 billion in revenue.

On a longer-term basis, from Thomson Reuters consensus data, Yahoo is expected to grow revenue 1.7% to $4.5 billion in 2014 and then grow revenue 3.2% more to $4.65 billion in 2015.

Trading at $35.35, its consensus price target is up at $41.12. Note that Yahoo’s chart pattern currently has the stock wedged between its longer-term moving averages. The 50-day moving average is below at $34.89, and the 200-day moving average is up above at $36.21.

Here are the top seven earnings previews for this week in technology stocks.

ALSO READ: 12 Analyst Stocks to Buy Under $10 With Massive Upside Potential

Updated information has been provided to us by WhisperNumber.com:  The Yahoo! whisper number is $0.37, one cent behind the analysts’ estimate and showing little confidence from investors. Whispers range from a low of $0.25 to a high of $0.45. Yahoo! has a 62% positive surprise history (having topped the whisper in 39 of the 63 earnings reports for which we have data). The overall average price move is ‘negative’ (beat the whisper number and see weakness, miss and see weakness) when the company reports earnings.

Sponsored: Want to Retire Early? Here’s a Great First Step

Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.