Earnings Preview of the Day 7/22: Yahoo! (YHOO)

July 22, 2008 1:49 PM EDT

While quarterly earnings per share and revenue results are often the most widely looked at metric of a company's financial position, Wall Street also considers other important factors such as guidance or margins, just to name a few. As a result, stocks often trade wildly around an earnings announcement: seemingly weak sales and EPS numbers do not guarantee downside and a stock could still trade higher due to a better-than-expected guidance range, for example.

Keeping this in mind, lets take a look at how Yahoo!'s (Nasdaq: YHOO) stock trades following an earnings report. All financial metrics aside, consider simply how the market reacts to Yahoo!'s quarterly results:

Quarter - Date of ReportActual Results
vs. Street Estimates
Stock Performance
1 Day After Earnings
Stock Performance
45 Days After Earnings
Q108 - Apr. 22BeatDown 1.6%Down 5.8%
Q407 - Jan. 29MixedDown 8.5%Up 35.7% *
Q307 - Oct. 16BeatUp 8.0%Down 7.4%
Q207 - Jul. 17In-LineDown 4.8%Down 13.4%
Q107 - Apr. 17BeatDown 11.8%Up 1.4%
Q406 - Jan. 23BeatUp 7.3%Up 0.6%
* - Microsoft (Nasdaq: MSFT) announced its initial offer to acquire Yahoo! during this time period.

StreetInsider.com Note: the above research was done using only StreetInsider.com and a chart of the stock. In order to see a history of earnings reports on a certain stock, type in your favorite ticker in the box to the left of the "Get Quote" button in the upper left-hand corner of the StreetInsider.com home page. Once at the stock look-up page, scroll down to the section labeled "Reports by Category". This section can be used to group reports on a specific stock into similar categories like earnings. After clicking on the Earnings link, users can easily see the dates and specific times of all earnings covered as well as the results versus the Street's consensus.


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Stocks Mentioned

MSFT 29.10

+0.09 +0.31%
Volume: 44,533,899
Track MSFT

YHOO 16.11

+0.07 +0.44%
Volume: 14,111,709
Track YHOO


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