Yahoo! Inc. (NASDAQ:YHOO)
Information Technology - Internet Software & Services | Reports April 19, After Market Closes
Key Takeaways
- Estimize is calling for Yahoo! EPS of $0.07 on $856.26 million in revenue, right in line with Wall Street on the bottom line and $10 million higher on top
- Yahoo continues to see a significant slowdown in its core search platform and what CEO Mayer has called the Mavens business
- Financials have been just as bad, as Yahoo continues to post huge losses on declining cash and rising operating expenses
The drama that continues to follow Yahoo and its CEO Marissa Mayer has been no secret. Since being appointed to the role in 2012, Mayer has largely failed to turn around the company in the three year timeframe she promised. Unsurprisingly, earnings have been in flux throughout Mayer’s reign. Since FQ3 2014, EPS has been steadily tracked lower with a high probability of coming in even lower when it reports, today.
The Estimize consensus is calling for EPS of $0.07 on $856.26 million in revenue, right in line with Wall Street on the bottom line and $10 million higher on top. Since the start of the quarter, estimates have fallen 27% for EPS and 5% for revenue. Additionally, the consensus reflects a YoY decline on the bottom line by 52% and 18% drop in sales. 
What was once the dominant search engine in the early 2000s is now an afterthought to Google (NASDAQ:GOOGL). Sure enough, earnings have tracked downward, steadily declining in each quarter of fiscal 2015.
The stock has also suffered and is now down 16.6% in the past 12 months. Yahoo continues to see a significant slowdown in its core search platform and what Mayer has called the Mavens business.
Its search troubles are nothing new and are unlikely to get better as many users are too accustomed to using Google. Mavens (mobile, video, native, social), on the other hand, had grown 44.1% in 2015 but early indications suggest this number will fall to 8.7% in fiscal 2016. Financials have been just as bad. Last quarter Yahoo posted a huge net loss of $4.44 billion on a declining cash position and rising operating expenses.
Yahoo released its best news earlier this year after indicating they would explore bids for a potential takeover. Since then the stock is up 24.91% on increased speculation of new leadership at the helm. After a number of big names like Time Inc (NYSE:TIME), Google, Comcast (NASDAQ:CMCSA) and AT&T (NYSE:T) bowed out, Verizon Communications (NYSE:VZ) has become the front-runner to acquire Yahoo.
Do you think YHOO can beat estimates?