Yahoo! (YHOO) posted EPS of $0.13 and revenues were $1.228 Billion; estimates were $0.13 and $1.2 Billion. Before taking out TAC, revenues were $1.702 Billion. It is guiding $1.12 to $1.23 Billion and sees gross profit at $900 to $980 million.
SEMEL isn’t leaving by the sound of this: "I am pleased with the progress Yahoo! made in the fourth quarter. We successfully addressed many of the challenges we faced in the third quarter and made aggressive moves to deliver on a number of strategic goals that we set forth for the organization. I am confident that our new structure and concentrated focus on Yahoo!’s key priorities puts us in the best position to take advantage of the many opportunities that we see ahead for 2007 and beyond."
Sue Decker tries to talk up search: "We generated very solid growth and profitability in the fourth quarter and full year 2006, putting the company in a strong financial position and looking forward, we are very optimistic about the potential of our search monetization initiative to improve the value of search for Yahoo! and our partners. For 2007, we are organized to maximize value for Yahoo!’s key customer groups — audiences, advertisers and publishers — by delivering engaging products and effective solutions for consumers and marketers, both on and off the Yahoo! network."
The company ended the quarter with some $2.59 Billion in cash and shorter-term securities. YHOO closed down 1.7% at $26.96 and have traded down another 1.5% at $26.58 in after-hours trading.
Jon C. Ogg
January 23, 2007
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