Yahoo! (YHOO) Number Raised at Needham & Company Ahead of Q2 Print

Needham & Company analyst Laura Martin reiterated a Buy rating, raised estimates and raised her price target on Yahoo! (NASDAQ: YHOO) from $26 to $31 Wednesday, ahead of Q2 results due after the market closes on Tuesday, July 16, 2013.

For Q2, the firm maintained 2Q13 revenue and GAAP EPS estimates, but raised Non-GAAP EPS to reflect a lower tax rate in 2Q13, consistent with 1Q13 results. They estimate Net Revenue of $1.067B (down 1% y/y) and Reported EPS of $0.24 (up 34% y/y). They now expect 2Q13 Non-GAAP EPS of $0.30 (up 9% y/y and 15% above previous estimates).

For FY13, they maintain FY13 revenue and GAAP EPS estimates, but raised Non-GAAP EPS to reflect a lower tax rate in 2H13, consistent with 1Q13 results. They estimate Net Revenue of $4.5B (flat y/y) and GAAP EPS of $1.20 (down
significantly y/y). We now estimate Non-GAAP EPS of $1.41 (up 20% y/y and 9% above previous estimate).

For FY14, they introduce FY14 estimates of revenue of $4.724B (up 5% y/y), Adjusted EBITDA of $1.799B (up 9% y/y), and Non-GAAP EPS of $1.55 (up 10% y/y).

For an analyst ratings summary and ratings history on Yahoo! click here. For more ratings news on Yahoo! click here.

Shares of Yahoo! closed at $26.68 yesterday.

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