Yahoo: Bernstein Cuts Target, Expects Weak Q3 Report
Yahoo (YHOO) reports Q3 results next Tuesday. Brace yourselves for something ugly.
Late Tuesday, Bernstein Research analyst Jeffrey Lindsay provided a pre-announcement update on the prospects for the quarter, and he is not optimistic. Lindsay is looking for revenue of $1.39 billion and pro forma profits of seven cents a share; that is a bit above the consensus at the top line, but two cents below the Street at the bottom line.
He notes that the Interactive Advertising Bureau last week released data that showed paid search grew 24 percent in Q2, compared to 17 percent for display ads, while classifieds and sponsorships fell 6 percent and overall ad spending rose 13 percent.
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