Yahoo 2Q Earnings Outlook

Yahoo (YHOO) is set to report earnings today after the close of the stock market. The company has a lot riding on those earnings. To date, it has been able to fend of a takeover attempt by Microsoft that has had quite a few twists and turns, with the latest being that activist shareholder Carl Icahn, has bought a five percent stake in Yahoo, hoping to partner with Microsoft in getting Yahoo to sell the company. Icahn now has three of the 11 board seats at Yahoo.

Any weakness in the earnings will be jumped on by critics of the company who would like to see it sold, and going  by analysts comments, Yahoo (YHOO) will be in the hot seat once those earnings are released.

Amongst the analysts following the company, the consensus per share estimates for the second quarter is 12 cents, a penny above same period last year.  The analysts are expecting revenue to come in at $1.37 billion. For the same period last year, revenues were $1.24 billion.

With the way tech earnings have been coming in (Apple, Texas Instruments, Sandisk etc will be dragging the market lower today on their earnings that they released last night) and Google (GOOG) missing and getting twelve percent knocked off its market cap in the last two trading days, it would be quite a feat if Yahoo managed to beat and provide a forecast that’s palatable to analysts.

July 22, 2008 | Filed Under Stocks | Leave a Comment