Yahoo! Earnings Consensus Estimate at $.24 EPS
Yahoo! (NASDAQ:YHOO) is expected to report Q4 earnings after the market close on Tuesday, January 24, with a conference call scheduled for 5:00 pm ET. The consensus estimate is 24c for EPS and $1.19B for revenue, according to First Call.
Analysts expect Yahoo (NASDAQ:YHOO) to report Q4 results mostly in-line with expectations, and near the midpoint of the company’s prior top-line guidance range of $1.13B-$1.24B. Expectations are low for Q4, as Yahoo (NASDAQ:YHOO) is expected to post its 13th consecutive quarter of declining revenue — a situation investors hope new CEO Scott Thompson can turn around.
The company is still struggling to accelerate its ad sales against Google (NASDAQ:GOOG) and Facebook. Thompson said boosting Yahoo’s revenue would be among his top priorities, however, it may still be too early to expect him to provide much detail in the earnings conference call. Thompson is expected to look for new areas to contain costs and increase earnings at Yahoo (NASDAQ:YHOO) and ‘reportedly’ has already frozen hiring. According to All Things D, Thompson is considering jettisoning some of the 13,700 workers that Yahoo (NASDAQ:YHOO) had on the payroll as of Sept. 30. Analysts believe the departure of former CEO and 17-year board member Jerry Yang will make it easier for Thompson to impose his will without any second-guessing.
It could also clear the way for Yahoo (NASDAQ:YHOO) to sell its stakes in China’s Alibaba Group and Yahoo Japan — deals that Yang at times seemed reluctant to close. However, an update on an Asian asset sale is probably unlikely for the Q4 call. Consensus for Q1 is 20c on $1.08B in revenue. Consensus for FY12 is EPS of 89c on $4.53B in revenue.
Competitors to Watch: Google Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), AOL, Inc. (NYSE:AOL), IAC/InterActiveCorp (NASDAQ:IACI), Rediff.com India Ltd. (NASDAQ:REDF), Sohu.com Inc. (NASDAQ:SOHU), Baidu.com, Inc. (NASDAQ:BIDU), InfoSpace, Inc. (NASDAQ:INSP), Intl. Business Machines Corp. (NYSE:IBM), and Demand Media Inc (NYSE:DMD).
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