Yahoo Shares Flat Ahead of Earnings

Yahoo! Inc.

Yahoo! Inc. (NASDAQ:YHOO) reports Q3 earnings after the bell closes today and with shares trading $1 away from its 52-week high, investors are hoping for good news.

In 2009 Yahoo shares have rallied back 40% and YHOO hit its bottom of $8.94 in November 2008.  Wall Street is looking for Yahoo's revenue ex-TAC of $1.2 billion, with profits of 7 cents a share. For the December quarter, the consensus is for $1.22 billion and 10 cents.

Can they match Google (GOOG) or even come close?

Here is what Barron's Eric Savitz will be watching for on Yahoo! Inc's call:

  • Adjusted EBITDA: Street consensus is about $357 million. Bank of America/Merrill Lynch analyst Justin Post wrote in a note yesterday that there could be some upside from there - he sees $367 million - from lower spending than anticipated in guidance.
  • Display and search ad trends: Post sees display down 15^ year over year and search down 17% on lower monetization.
  • Post also says loss of market share in search remains a risk; he worries about both lower query growth (compared to the 9% in Q3) and lower revenue per search (which was down 14% last quarter.)
  • The Street will be looking for confirmation of a rebound in overall online advertising trends, as suggested last week in Google’s stellar Q3 results.
    Any update on the status of the pending Microsoft deal.

Best of luck to all Yahoo shareholders. 

yhoo stock 

Disclaimer: No position in any of the securities mentioned in this publication.

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