Yahoo! Earnings: Here’s Why the Stock is Down 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 3.91%.

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Yahoo! Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 58.33% to $0.38 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Decreased 12.06% to $1.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Yahoo! Inc. reported adjusted EPS income of $0.38 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $1.1 billion.

Quoting Management: “I’m pleased with Yahoo!’s performance in the first quarter. We saw continued stability in our business, strengthened our team, and started the year with fast execution against our products and partnerships,” said Yahoo! CEO Marissa Mayer. “We are moving quickly to roll out beautifully designed, more intuitive experiences for our users. I’m confident that the improvements we’re making to our products will set up the Company for long-term growth.”

Key Stats (on next page)…

Revenue decreased 20.2% from $1.35 billion in the previous quarter. EPS increased 18.75% from $0.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.28 to a profit $0.27. For the current year, the average estimate has moved down from a profit of $1.15 to a profit of $1.11 over the last ninety days.

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