Jefferies Comments on Yahoo (YHOO) Following Earnings, Notes Display Revenues May Have Troughed
Tweet Send to a FriendGet Alerts YHOO Hot Sheet
Price: $26.24 +0.85%
Rating Summary:
14 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Rating Summary:
14 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Trade YHOO Now!
Jefferies is reaffirming its Buy rating and $18 price target on shares of Yahoo! (NASDAQ: YHOO) following the release of its third quarter results.
ex-Tac revenues were inline with expectations as they totaled $1.07 billion for the quarter. EPS topped the consensus by $0.06 as they came in at $0.23 per share.
Display revenues came in below most expectations, which were already low, as they represented no growth year over year. The firm believes that growth will begin once again in the fourth quarter as they note that it may have troughed in the third quarter.
Management released its fourth quarter guidance with a GAAP ex-Tac revenue outlook of $1.13-$1.24 billion and OI guidance of $200-$260 million, which is inline with the consensus of $1.2 billion in revenue and $253 million in income.
An analyst at Jefferies comments, "While mgt remained mum on the monetization of its Asian assets and the CEO search, the media frenzy around a sale of the company will continue to drive the stock ST. We continue to believe that a sale is likely, that an outright sale to Microsoft (Nasdaq: MSFT) (with Alibaba) makes the most sense, but that many permutations are likely to be considered in the process. Our $18 price target is based on DCF for core Yahoo! plus the public value of the Asian assets."
To go inline with market conditions and the company's guidance, Jefferies is raising its FY11 and FY12 EPS estimates from $0.75 and $0.76 to $0.82 and $0.86.
For more ratings news on Yahoo! click here and for the rating history of Yahoo! click here.
Shares of Yahoo! closed at $15.47 yesterday, with a 52 week range of $11.09-$18.84.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
ex-Tac revenues were inline with expectations as they totaled $1.07 billion for the quarter. EPS topped the consensus by $0.06 as they came in at $0.23 per share.
Display revenues came in below most expectations, which were already low, as they represented no growth year over year. The firm believes that growth will begin once again in the fourth quarter as they note that it may have troughed in the third quarter.
Management released its fourth quarter guidance with a GAAP ex-Tac revenue outlook of $1.13-$1.24 billion and OI guidance of $200-$260 million, which is inline with the consensus of $1.2 billion in revenue and $253 million in income.
An analyst at Jefferies comments, "While mgt remained mum on the monetization of its Asian assets and the CEO search, the media frenzy around a sale of the company will continue to drive the stock ST. We continue to believe that a sale is likely, that an outright sale to Microsoft (Nasdaq: MSFT) (with Alibaba) makes the most sense, but that many permutations are likely to be considered in the process. Our $18 price target is based on DCF for core Yahoo! plus the public value of the Asian assets."
To go inline with market conditions and the company's guidance, Jefferies is raising its FY11 and FY12 EPS estimates from $0.75 and $0.76 to $0.82 and $0.86.
For more ratings news on Yahoo! click here and for the rating history of Yahoo! click here.
Shares of Yahoo! closed at $15.47 yesterday, with a 52 week range of $11.09-$18.84.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Jefferies Bumps Zumiez (ZUMZ) Numbers Up, But Remains on Sidelines
- Wells Fargo Boosts Price Target on Pandora (P), Maintains Outperform
- Janney Capital Boosts PT on Gap (GPS) Post Q1
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & Co, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
