Jackson Securities Trims Q3 Estimates on Yahoo! (YHOO)
Jackson Securities lowered their Q3 estimates on Yahoo! (Nasaq: YHOO) following guidance to the bottom half of its prior forecast. Analyst, Brian Bolan, cut his Q3 topline estimates from $1.198 billion to $1.137 billion. The previous range that was given by the company was $1.115 billion to $1.225 billion. The analyst also cut his Q3 GAAP EPS estimate from $0.12 to $0.11.
Bolan said, "The reason for the lowered guidance is a slowdown in advertising spending in two key areas, autos and finance. The realization of the drop in advertising in the auto segment has future spending put further in doubt. Chrysler announced today that shipments to dealers would be lower by about 24% as demand has slowed and inventories are already high. This brings a healthy amount of doubt into the picture for the future growth of advertising in the auto segment." He also said, "The other key area that is experiencing a slowdown is finance. A key component of the finance advertising market is the mortgage and re-finance component. This space has been hurt over the last several months due to rising interest rates and high amounts of available new home inventories. The first round of brokerage reports (Goldman Sachs, Lehman Brother, Bear Stearns) have come in on the high side of expectations leading us to believe that this group is not likely to be pulling back on any internet advertising dollars."
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