Yahoo! (YHOO) had the bad judgment to start its earnings PR talking about what the company would look like in two years. "we believe we can significantly accelerate our revenue growth, return to our historically high margins, and double our operating cash flow by 2010." No one cares. And the results for the quarter were nothing more than mediocre.
The search engine and content giant was expected to post earnings of $0.09 EPS on $1.32 Billion revenues (ex-TAC revenues). For Q2, it is expected to post $0.11 EPS on revenues of $1.37 Billion; and for fiscal 2008 it is expected to see $0.44 EPS on $5.63 Billion.
As it turned out revenues were $1,818 million for the first quarter of 2008, a 9 percent increase compared to $1,672 million for the same period of 2007. Revenues excluding traffic acquisition costs ("TAC") were $1,352 million for the first quarter of 2008, a 14 percent increase compared to $1.183 billion for the same period of 2007.
Non-GAAP net income (excluding one-time gains) for the first quarter of 2008 was $150 million or $0.11 per diluted share compared to non-GAAP net income of $154 million or $0.11 per diluted share for the same period of 2007.
Yahoo! forecast Q2 revenue in a range of $1.73 billion to $1.93 billion and for the full year $7.2 billion to $8 billion.
Douglas A. McIntyre