Yahoo Inc. First Quarter 2015 Earnings Preview

Earnings Preview

Yahoo Inc. is all set to announce first quarter earnings report of fiscal year 2015 on Tuesday after the market close.

Yahoo Inc. is scheduled to announce its first quarter earnings results of fiscal year 2015 on Tuesday April 21 after market close. The earnings are expected to release at around 04:05 PM along with a conference call at 05:00 PM on Yahoo Investor relations. Yahoo Inc. is the component of NASDAQ 100 indices and S&P 500. Currently, the company holds almost 15% ownership in Alibaba Group Holding after divesting approximately 27% of its stake in Alibaba on the Initial Public Offering.

Yahoo stocks have underperformed the market in the quarter covering from January to March 2015, after Alibaba’s debut on the Wall Street last year. The stock of the company has gone down by more than 7% in first quarter. The main reason for this decline has been its core business, which was not able to deliver the essential grip in revenues in the industry of online advertisements. While the revenue of online ads in the country increased by more than 16% annually in third quarter to 12.4 billion as reported by Interactive Advertising Bureau and PwC United States. Gross ad revenue of the company plunged by 1.3% and reached $4.61 billion in the year 2014.

For the first quarter of fiscal year 2015, the Internet Advertising expects revenue to come in the range of $1.11 billion to $1.15 billion. Moreover, it also expects adjusted EBITDA to fall in the range of $200 to $240 million, and non-GAAP operating profit to come in the range of $50 to $90 million. The company’s direction for the quarter specified that the much required enhancement in essential business endures to elude management of Yahoo, in spite of several acquisitions and refreshes.

The Street forecasts Non-GAAP earnings of $1.18 per share, and revenue of $1.14 billion falling in the range of company’s guidance.

With 40 analysts covering the stock of Yahoo Inc., it seems like that most of the analysts have more bullish viewpoint on Yahoo stock as 25 gave Buy rating, 15 of them assigned Hold rating and none of them have given Sell rating to the stock of the company.

Yahoo stock closed at $44.45 on Friday after going red by 2.91%. The company has $41.61 billion of market capitalization.

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