Yahoo! Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Yahoo! Inc. (NASDAQ:YHOO) will unveil its latest earnings tomorrow, Monday, January 28, 2013. Yahoo is a digital media company that delivers personalized digital content and experiences across devices worldwide.

Yahoo Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 27 cents per share, a rise of 8% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $1.07 per share, a rise of 28.9% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 11 cents, coming in at profit of 35 cents a share versus the estimate of net income of 24 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit rose 977.5% to $3.16 billion ($2.64 a share) from $293.3 million (23 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.2% to $1.2 billion from $1.22 billion.

Here’s how Yahoo!¬†traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.76 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.04 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased more than threefold to $3.51 billion while assets rose more than twofold to $9.69 billion.

Stock Price Performance: Between October 24, 2012 and January 22, 2013, the stock price rose $3.35 (20.2%), from $16.55 to $19.90. The stock price saw one of its best stretches over the last year between January 10, 2013 and January 17, 2013, when shares rose for six straight days, increasing 6% (+$1.14) over that span. It saw one of its worst periods between August 7, 2012 and August 14, 2012 when shares fell for six straight days, dropping 9.2% (-$1.49) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 0.9% in the second quarter and dropped again in the third quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of more than threefold for the last four quarters.

Wall St. Revenue Expectations: On average, analysts predict $1.21 billion in revenue this quarter, a rise of 3.4% from the year-ago quarter. Analysts are forecasting total revenue of $4.46 billion for the year, a rise of 1.8% from last year’s revenue of $4.38 billion.

Analyst Ratings: There are mostly holds on the stock with 20 of 25 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)