Yahoo! Earnings Approach

S&P 500 (NYSE:SPY) component Yahoo! (NASDAQ:YHOO) will unveil its latest earnings today, Monday, October 22, 2012. 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 estimate of analysts is for net income of 24 cents per share, a rise of 14.3% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from 25 cents during the last month. Analysts are projecting profit to rise by 15.7% compared to last year’s 96 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 27 cents per share against a mean estimate of net income of 20 cents per share.

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Stock Price Performance: Between August 20, 2012 and October 19, 2012, the stock price had risen 88 cents (5.88%), from $14.96 to $15.84. The stock price saw one of its best stretches over the last year between November 23, 2011 and December 1, 2011, when shares rose for six straight days, increasing 8.6% (+$1.29) 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.

A Look Back: In the second quarter, profit fell 4.4% to $226.6 million (18 cents a share) from $237 million (18 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.9% to $1.22 billion from $1.23 billion.

Analyst Ratings: There are mostly holds on the stock with 20 of 26 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 0.6% in the the first quarter after dropping in the second quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 0.9% in revenue from the year-earlier quarter to $1.08 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.04 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 3.25 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 6.1% to $3.27 billion while liabilities rose by 0.6% to $1.08 billion.

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

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