Yahoo! Earnings: Everything You Must Know Now

Yahoo! Inc. (NASDAQ:YHOO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.31%.

Yahoo! Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 29.63% to $0.35 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Decreased 12.05% to $1.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Yahoo! Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.3. It missed the average revenue estimate of $1.08 billion.

Quoting Management: “I’m encouraged by Yahoo!’s performance in the second quarter. Our business saw continued stability, and we launched more products than ever before, introducing a significant new product almost every week,” said Yahoo! CEO Marissa Mayer. “From the new Yahoo! News, the new Yahoo! Sports app, the redesigned Yahoo! search, the new Flickr, the new Yahoo! Mail for tablet, the Yahoo! Weather app, our new Yahoo! app with Summly – this quarter drove tremendous improvements in our product line and our users responded with increased usage and engagement.”

Key Stats (on next page)…

Revenue decreased 6.08% from $1.14 billion in the previous quarter. EPS decreased 7.89% from $0.38 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.29 to a profit $0.34. For the current year, the average estimate has moved up from a profit of $1.19 to a profit of $1.41 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More from The Cheat Sheet