Yahoo's stock fell almost 13% in after-hours trading after the company announced Q4 results and guidance. Consensus estimates were for adjusted earnings of $0.17 per share and revenue excluding traffic acquisition costs of $1.07 billion. Yahoo met the revenue number but narrowly missed the EPS number by a penny.
More important, Yahoo's guidance for Q2 was below the Street's current consensus: Yahoo guided to net revenue of $1.04-1.1 billion -- mid-point $1.075 billion -- versus the consensus of $1.09 billion.
While the difference between the mid-point of Yahoo's guidance and the consensus isn't that large, Yahoo's failure to meet expectations of a "beat-estimates-and-raise-guidance" quarter hammered the stock in late trading.