Yahoo's Fourth Quarter "Encouraging," Says CEO; Street Says "Eh"
Investors hoping Yahoo might benefit from the same surge in online display advertising spending that drove Google to its recent big quarter are in luck–except for the big-quarter part.
Posting fourth-quarter earnings today after sacking one percent of its staff, the company reported net income of 24 cents per share on revenue of $1.21 billion. The Street doesn’t seem convinced, though. Yahoo shares are down 3.5 percent as I write this.
Analysts had been expecting earnings of 22 cents per share on $1.19 billion in net revenue–a big jump from the 11 cents per share the company reported in the same period last year, but a troubling decline from the $1.26 billion in net revenue that accompanied it. That said, display advertising did grow. For the current quarter, the company sees revenue in a range of $1.02 billion to $1.08 billion; analysts had been looking for $1.13 billion.
“We just completed a very encouraging quarter and year for Yahoo!, where we saw our plans to turn around the company gain momentum,” CEO Carol Bartz said in a canned statement. “For the year, operating income, margins, EPS, and return on invested capital doubled. Display advertising grew 17 percent. We completed the important North America Search transition to Microsoft on schedule and with high quality. We introduced new and updated products at a faster pace. And our content properties–like Yahoo! Sports and Yahoo! Finance–continued to innovate and extend their massive lead.”
Look for more coverage of the earnings call at BoomTown later this afternoon. Meanwhile, here’s the press release in full:
(Also, you can see a slide deck of the financials here.)
[Image Credit: Byzantin3]