Seeking Alpha

More on Yahoo: Q4 guidance soft, Alibaba numbers strong, deal amended

  • Yahoo (YHOO) expects Q4 revenue of $1.18B-$1.22B, below a $1.25B consensus. Operating income is expected to total $240M-$260M, down from $283M a year earlier.
  • However, Alibaba had Q2 revenue of $1.74B (+26% Q/Q and +61% Y/Y) and net income of $717M (+145% Y/Y). That's offsetting the Q4 guidance. Yahoo Japan (35% stake) had revenue of $992M (-4% Y/Y) and net income of $365M (+15%).
  • Also: Yahoo says it has amended the Alibaba deal to lower the number of shares it's required to sell following an IPO to 208M from a prior 261.5M.
  • Yahoo's Q3 revenue (ex-TAC) fell 1% Y/Y, same as Q2 and Q1. Search ads +3% Y/Y vs. +5% in Q2. Paid clicks +21 %, price per click -4%. Display ads -7% Y/Y vs. -11% in Q2. Ads sold +1%, price per ad -7%. The ad volume and pricing data excludes Yahoo's discontinued Korean ops.
  • $1.69B was spent to buy back 59M shares at an average price of $28.53. That's up sharply from Q2's $653M.
  • Thanks to the buybacks, Yahoo's cash balance stood at $3.2B at the end of Q3, down from $4.8B at the end of Q2.
  • YHOO +0.3% AH. CC/live video talk at 5PM ET.
  • Q3 results, PR, slide deck

Check out Seeking Alpha’s new Earnings Center »

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs