Wednesday, April 14, 2010

Yahoo! Inc. (NASDAQ: YHOO): Q1 Earnings Preview 2010

Yahoo! Inc. (NASDAQ: YHOO) is scheduled to release its Q12010 earnings after the closing bell on Tuesday, April 20, 2010. Analysts, on average, expect the company to report earnings of $0.09 per share in the first quarter with estimates ranging from a low of $0.07 per share to a high of $0.12 per share. Revenues for the quarter are estimated to be $1.17 billion. In Q12009, the company reported earnings of $0.08 per share on revenue of $1.16 billion.

Yahoo! Inc. provides online properties and services to users; and marketing services to advertisers worldwide.

In the preceding Q12010, the Sunnyvale, California-based company reported that it swung to a profit of $152.95 million or $0.11 per share, compared to a loss of $303.43 million or $0.22 per share in the same quarter last year. Revenue totaled $1.73 billion, compared to $1.81 billion in the prior year quarter. Analysts, on average, expected the company to report earnings of $0.11 per share on revenue of $1.23 billion for the quarter.

According to company's own projections, revenue for the first quarter of 2010 is expected to be in the range of $1.575 billion to $1.675 billion. Income from operations for the first quarter of 2010 is expected to be in the range of $90 million to $110 million.

Online-ad business has been showing signs of picking up. According to ZenithOptimedia, worldwide online ad spending is expected to increase by nearly 13 percent this year to $62.6 billion. Internet ads, which overtook magazines last year with a 12.6 percent share of the total ad market, should take a 17 percent market share in 2012. It would be the third-largest recipient of ad spending, after TV and newspapers.

Meanwhile, Yahoo gained share in the U.S. Internet search market in March, reversing six months of declines. Yahoo's share inched higher to 16.9% from 16.8% in March, comScore reported.

In March, the company agreed to acquire Citizen Sports, a company that brings the world of sports to fans' favorite social networking sites and mobile devices through innovative applications. The company expects to complete the acquisition in the second quarter of 2010. Financial terms of the deal were not disclosed. Yahoo said the acquisition will strengthen its social strategy of enriching, aggregating and distributing social content from across the entire Web, and offering a highly customizable social experience.

In terms of stock performance, Yahoo shares have gained nearly 6 percent since the beginning of the year.

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