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Yahoo (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 (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.

Source: Earnings Preview: Yahoo