Yahoo! Earnings: Mayer’s Turnaround Plan Pops Shares

Yahoo! Inc. (NASDAQ:YHOO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.92%. Your Strategy Cheat Sheet to Marissa Mayer’s Yahoo>>

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Yahoo! Inc. Earnings Cheat Sheet

Results: Net income decreased -4.25% to $283 million (32 cents per diluted share) in the quarter versus a net gain of $295.57 million in the year-earlier quarter.

Revenue: $1.22 billion.

Actual vs. Wall St. Expectations: Yahoo! Inc. reported adjusted net income of 32 cents per share. By that measure, the company beat the mean analyst estimate of $0.28. It beat the average revenue estimate of $1.21 billion.

Cash Highlights: Cash, cash equivalents, and investments in marketable debt securities were $6 billion at December 31, 2012 compared to $2.5 billion at December 31, 2011, an increase of $3.5 billion.

During the fourth quarter of 2012, Yahoo! repurchased 80 million shares for $1.5 billion. During the year ended December 31, 2012, Yahoo! repurchased 126 million shares for $2.2 billion.

Quoting Management: “I’m proud of Yahoo!’s 2012 and fourth quarter results. In 2012, Yahoo! exhibited revenue growth for the first time in 4 years, with revenue up 2 percent year-over-year,” said Yahoo! CEO Marissa Mayer…

…During the quarter we made progress by growing our executive team, signing key partnerships including those with NBC Sports and CBS Television, and launching terrific mobile experiences for Yahoo! Mail and Flickr. At the same time, we achieved tremendous internal transformation in the culture, energy and execution of the Company.”

Mayer said, “We are focused on breaking down bureaucracy…”

Key Stats:

Revenue increased 1.6% from $1.2 billion in the previous quarter. Net income decreased 91.04% from $3.16 billion in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.26 and has not changed. For the current year, the average estimate has moved down from a profit of $1.15 to a profit of $1.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)