Yahoo (NASDAQ:YHOO) is expected to report Q4 earnings today with a conference call scheduled for 5:00 pm ET.
The consensus estimate is 11c for EPS and revenue $1.41B, according to First Call. The consensus is mixed; some analysts say it will be a strong quarter, and others expect in-line results. RBC Dain remains cautiously optimistic despite concerns surrounding 2008 guidance. RBC Dain says the shares are pricing in the worst-case scenario: A U.S. advertising recession, new expectations, a loss in access revenue, and no improvement in its OaO search business. Regarding guidance, Soleil believes Yahoo will give weak 2008 top-line guidance, owing to a slowing consumer economy, weakening macro advertising demand, and pricing challenges to the company's branded advertising business.
There's also the continued loss of search market share to Google (NASDAQ:GOOG), fees revenue risk from re-negotiations, and reports that Yahoo may lay off 5% to 15% of its 14,000 employees. The most important take-aways from the call will be for Google, scheduled to report on Thursday, January 31, and whose shares trade at a premium to Yahoo.