Yahoo 3Q Earnings Slides: The Good, the Bad and the Revenue Ugly

Correction: Revenue is $1.601 billion as compared to $1.12 billion posted in this article.

Jacob – if you would do a little work instead of yapping that the only EPS growth comes from buyback you’d see that only $0.1 of the EPS growth comes from buyback…far from the “only real reason” EPS is up

i think you need to do some math
they spent over $800m just this quarter
$1.5 billion this year buying back shares
there are 1.3 billion shares
Cash flow from operations declined 2% from the prior-year period, to $346 million.

all true statements (though buyback has nothing to do with cash from operations – so not sure why you mention that in this discussion). do the calc on NI and Diluted shares YOY and it’s a $0.01 impact.

1 penny (i calculate more) even by your calculation is the difference between yahoo meeting earnings and missing them. also that is only based upon yahoo’s spending $850 million dollars this quarter. over the year yahoo spent $1.5 billion to buy back shares. now spread earnings over those shares and you even further missing estimated EPS. agreed?

nope – disagree. they beat consensus by a penny – so it’s not the difference between making and missing – it’s the difference between beating and making. Also – tough to say what the analysts had aleady included in the consensus – they are all fully aware of any buy-back and likely had some amount of the buyback included in the forecasts they are using (certainly they would have had the first 6 months of the year included). Finally, the EPS calc is based on diluted share count – which is a YTD measure and includes YTD buyback – and net income. Take the current net income, and divide by last years share count and compare that with current net divdied by current share count. Difference is $0.01.