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July 20, 2005

Yahoo Shares Fall Despite Healthy Profit

Marketwatch: Even though Yahoo's second-quarter profit increased more than sixfold, shares dropped nearly 9% in pre-market action Wednesday after the company posted its latest earnings report...Finicky investors hammered the company's stock, driving it down after the healthy earnings announcement - shares rose $1.15 to $37.73 in regular trading, but then plunged to $33.90 after hours...Among the chief concerns is whether the online media giant is losing market share in its search business...Through June, Google had a 36.9 percent share of the U.S. market, outdistancing Yahoo!'s 30.4 percent share, according to comScore Networks.

Yahoo earned $754.7 million, or 51 cents a share, during the three months ending in June, compared with a profit of $112.5 million, or 8 cents per share, a year earlier. Revenue totaled $1.25 billion, which is a 51 percent increase from $832.3 million last year. Surprisingly though, investors expressed dismay with a quarter that revealed slowing growth of the company's operating profit....According to the report, "Yahoo expects to generate sales between $880 million and $930 million in the third quarter. Analysts currently expect Yahoo to generate sales of $922.4 million. Yahoo expects third-quarter earnings before interest, taxes, depreciation and amortization to be between $350 million and $380 million, below analysts' consensus forecast of $390 million." RBC Capital Markets weighed in early on the results, cutting its price target on the stock to $36 from $40, due to the below consensus sales...

--Wall St. Wants More from Yahoo!
--Yahoo Profit Soars; Shares Tumble

Posted by Todd in Yahoo | Permalink


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