Aol Second Quarter Earnings Sneak Peek

AOL (NYSE:AOL) will unveil its latest earnings on Tuesday, August 9, 2011. AOL Inc. is a global web services company whose business consists of online content, products and services that it offers to consumers, publishers and advertisers.

Aol Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of one cent per share, a decline of 98% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 9 cents. Between one and three months ago, the average estimate moved down and dropped from 2 cents during the last month. For the year, analysts are projecting profit of 48 cents per share, a decline of 86% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 22 cents per share against a mean estimate of profit of 20 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $530.4 million in revenue this quarter, a decline of 9.2% from the year ago quarter. Analysts are forecasting total revenue of $2.18 billion for the year, a decline of 9.9% from last year’s revenue of $2.42 billion.

Analyst Ratings: Analysts seem relatively indifferent about Aol with eight of 15 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 17% to $551.4 million in first quarter. The figure fell 24.2% in the fourth quarter of the last fiscal year from the year earlier, dropped 27.4% in third quarter of the last fiscal year from the year-ago quarter and 27.3% in the second quarter of the last fiscal year.

Competitors to Watch: Google Inc. (NASDAQ:GOOG), Yahoo! Inc. (NASDAQ:YHOO), Microsoft Corporation (NASDAQ:MSFT), IAC/InterActiveCorp (NASDAQ:IACI), Demand Media Inc (NYSE:DMD), News Corporation (NASDAQ:NWSA), The New York Times Company (NYSE:NYT), CBS Corporation (NYSE:CBS), and, Inc. (NASDAQ:BIDU).

Stock Price Performance: During July 6, 2011 to August 3, 2011, the stock price had dropped $3.66 (-17.7%) from $20.64 to $16.98. The stock price saw one of its best stretches over the last year between November 30, 2010 and December 7, 2010 when shares rose for six-straight days, rising 6.1% (+$1.48) over that span. It saw one of its worst periods between July 22, 2011 and August 2, 2011 when shares fell for eight-straight days, falling 15.9% (-$3.08) over that span. Shares are down $6.73 (-28.4%) year to date.

(Source: Xignite Financials)

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