Yahoo 2005 Earnings Strong But Don’t Meet Street Expectations
Yahoo’s 2005 Q4 revenues came in at $1.5 billion, which was up 39% from the $1.078 billion earned in Q4 2004. However, Yahoo’s stock took a plunge in after-hours trading yesterday evening, dropped by over 12%.
Apparently Yahoo missed Wall Street estimates by .01, a penny, but ruthless traders feel that Yahoo could have done better. I wonder how much more this has to do with the Japan Livedoor stock scandal and the mini-crash of the Japanese stock market over the past two days.
The Associated Press reports “Analysts, on average, were looking for earnings of 17 cents per share on sales of $1.07 billion according to a poll by Thomson Financial.
Yahoo shares were down $4.96 or 12.4 percent, at $35.17 on INET, after closing at $40.11 on the Nasdaq.”
Despite Wall Street trends and fluctuations in stock trading value, Yahoo looks quite strong : “Yahoo! has a strong track record of focusing and delivering on some of the biggest opportunities on the Internet,” said Terry Semel, chairman and chief executive officer, Yahoo!. “In 2005, Yahoo! continued to achieve significant results by providing some of the most innovative services to our hundreds of millions of
consumers and deepening both our global reach and user engagement. As we look ahead, we will continue to focus on creating the best consumer experience, finding new ways to engage our audience and delivering the best value for our advertisers.”
Here’s a rundown of Yahoo Fourth Quarter 2005 Financial Results:
* Revenues were $1,501 million for the fourth quarter of 2005, a 39 percent increase compared to $1,078 million for the same period of 2004.
> Marketing services revenue was $1,315 million for the fourth quarter of 2005, a 39 percent increase compared to $943 million for the same period of 2004.
> Fees revenue was $186 million for the fourth quarter of 2005, a 38 percent increase compared to $135 million for the same period of 2004.
* Revenues excluding traffic acquisition costs (TAC) were $1,068 million for the fourth quarter of 2005, a 36 percent increase compared to $785 million for the same period of 2004.
* Gross profit for the fourth quarter of 2005 was $928 million, a 34 percent increase compared to $691 million for the same period of 2004.
* Operating income for the fourth quarter of 2005 was $329 million, a 40 percent increase compared to $235 million for the same period of 2004.
* Operating income before depreciation and amortization for the fourth quarter of 2005 was $459 million, a 40 percent increase compared to $327 million for the same period of 2004.
* Cash flow from operating activities for the fourth quarter of 2005 was $481 million, a 43 percent increase compared to $337 million for the same period of 2004.
* Free cash flow for the fourth quarter of 2005 was $330 million, a 31 percent increase compared to $251 million for the same period of 2004.
* Net income for the fourth quarter of 2005 was $683 million or $0.46 per diluted share compared to $373 million or $0.25 per diluted share for the same period of 2004.
* Adjusted net income for the fourth quarter of 2005 was $247 million or $0.16 per diluted share compared to $187 million or $0.13 per diluted share for the same period of 2004.
