All eyes will be on Yahoo! Inc. (YHOO) after today’s close. Wall Street analysts are on average expecting the web portal to post $1.26 billion in sales during the quarter. This would show a 1.61% increase from the Q215 revenue of $1.24 billion, and an increase of 16.67% from the same period in Q314. EPS in Q315 are expected to come in at $0.16, a decline rate of 69.23% from $0.52 per share a year earlier. Meanwhile, EarningsWhisper.com reports a whisper number of $0.16 per share.
As a quick reminder, Yahoo reported Q215 EPS of $0.16, $0.02 lower than the Street’s consensus estimate. Revenue increased 19.23% year-over-year to $1.24 billion versus the $1.03 billion consensus.
On valuation measures, Yahoo! Inc. shares are priced at 4.65x this year’s forecasted earnings, compared to the industry’s 10.30x earnings multiple. The company’s current year and next year EPS growth estimates stand at (57.3%) and flat %-wise, compared to the industry growth rates of 14.10% and 24.40%, respectively. YHOO has a t-12 price-to-sales ratio of 6.45. EPS for the same period registers at $7.20.
Yahoo shares have advanced 8.98% in the last 4 weeks, while declining 15.68% in the past three months. Over the past 5 trading sessions the stock has gained 1.95%. The Sunnyvale, California-based company, which is currently valued at $31.54 billion, has a median Wall Street price target of $44.50 with a high target of $61. It should be noted that for the time being the stock’s underlying valuation relies on its ability to complete a tax free spin off for its remaining stake in Alibaba (BABA).
In terms of share statistics, Yahoo has a total of 941.39 million shares outstanding with 13.38% held by insiders and 61.60% held by institutions. The stock’s short interest currently stands at 5.11%, bringing the total number of shares sold short to 44.23 million.
YHOO is down 12.87% year-over-year, compared with a 4.76% gain in the S&P 500.
Leave a Reply