Yahoo! Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Yahoo!, Inc. (NASDAQ:YHOO) will unveil its latest earnings on Tuesday, July 19, 2011. Yahoo, Inc., is focused on powering its communities of users, advertisers, publishers and developers by creating indispensable experiences built on trust.

Yahoo!, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 18 cents per share, a rise of 12.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 17 cents. For the year, analysts are projecting profit of 79 cents per share, a rise of 8.2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 19 cents per share against a mean estimate of profit of 16 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.11 billion in revenue this quarter, a decline of 1.8% from the year ago quarter. Analysts are forecasting total revenue of $4.55 billion for the year, a decline of 0.9% from last year’s revenue of $4.59 billion.

Analyst Ratings: Analysts seem relatively indifferent about Yahoo with 20 of 35 analysts surveyed maintaining a hold rating.

Key Stats:

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 28.1% in the first quarter from the year earlier, while the figure rose more than twofold in the fourth quarter of the last fiscal year, more than twofold in the third quarter of the last fiscal year and 50.9% in the second quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In first quarter, revenue declined 24% to $1.21 billion from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure fell 11.9%.

Competitors to Watch: Google Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), AOL, Inc. (NYSE:AOL), IAC/InterActiveCorp (NASDAQ:IACI), India Ltd. (NASDAQ:REDF), Inc. (NASDAQ:SOHU),, Inc. (NASDAQ:BIDU), InfoSpace, Inc. (NASDAQ:INSP), Intl. Business Machines Corp. (NYSE:IBM), and Demand Media Inc (NYSE:DMD).

Stock Price Performance: During April 15, 2011 to July 13, 2011, the stock price had fallen $1.71 (-10.3%) from $16.62 to $14.91. The stock price saw one of its best stretches over the last year between August 18, 2010, and August 26, 2010, when shares rose for seven-straight days, rising 5.9% (+78 cents) over that span. Shares have been on a negative streak of late, closing down every day between July 12, 2011 and July 13, 2011. Shares are down $1.72 (-10.3%) year to date.

(Source: Xignite Financials)

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