All Eyes on Yahoo’s Q3 Earnings Tomorrow, With Results Under Pressure
Tomorrow, after the markets close, Yahoo will announce its third-quarter earnings, perhaps one of its more important reports in recent years.
Wall Street analysts are expecting the Silicon Valley Internet giant to report earnings of 17 cents per share on $1.07 billion in revenues.
But whether or not Yahoo has beat expectations will be less scrutinized than information about the state of Yahoo’s key search and display advertising businesses, as well as other user metrics.
It is at those numbers that a range of players — including major shareholders, possible bidders and media — will be looking to see just how badly the company’s business has fared with all the turmoil of late.
That has included the firing of its CEO Carol Bartz, a massive strategic review that includes the possibility of a sale to a range of mostly private equity buyers, a persistent attrition problem and a worry that the company continues to drift in its product innovation, even as others have surged.
Last week, I reported that Yahoo had finally selected an executive search firm to help it find a new CEO, which many think is a difficult task given the uncertain situation.
A series of worrisome trends across its ad businesses over several recent quarters has some looking at the company for possible purchase with some skepticism.
“What if it is too broken to fix, what if trends to Google’s and Facebook’s premium offerings is too overwhelming?” said one potential bidder for Yahoo. “There are a lot of what-ifs at Yahoo.”
By comparison, Google posted impressive earnings last week.
Yahoo stock closed at $15.70 today, down 1.3 percent.