Yahoo Earnings Report: Talk and Yawn
Was it Shock and Awe?
To tell the truth, as expected, it was more like Talk and Yawn.
Yahoo (YHOO) earnings report indicates a solid performance, as it needed to be. Check!
Microsoft (MSFT) CEO Steve Ballmer pooh-poohs the results in advance, ensuring his sentiments will be in all coverage. Double check!
Proxy slamdown threat still set for Saturday! Check again!
Now, the Yahoo-Microsoft takeover soap opera moves to a true ground battle.
Oh, please, no.
But unless Microsoft steps up and pays more right now, this is not going to end quickly, and will be more a Sisyphean slog than anything else.
The basics: Yahoo’s first quarter net revenue was $1.35 billion, just a bit above consensus. Earnings per share was 11 cents, just above the 9 cents consensus. Lots of cash washing around, although adjusted cash flow down. Guidance decent.
“As outlined in our investor presentation, we believe we can significantly accelerate our revenue growth, return to our historically high margins, and double our operating cash flow by 2010,” said Yahoo CEO Jerry Yang in a statement today. “This quarter’s solid performance underscores the fact that we are executing on that plan.”
Translation: We just got more ammo in our fight to prove we are worth more than Microsoft is offering.
Well, yes, more ammo, but more like a really good BB gun than a Howitzer Yahoo could sure use.