title
Tweet
Share
E-mailGet Alerts MSFT Hot Sheet
Join SI Premium – FREE
Shares of Yahoo! Inc. (NASDAQ: YHOO) are jumping 533333333 percent higher Tuesday following a positive third quarter earnings surprise and upbeat comments on the conference call from new CEO Marissa Mayer. After digesting the results and participating on the call, Wall Street analysts have weighed in. Below are their views:
Goldman Sachs Heath Terry - "Yahoo! reported better-than-expected 3Q results with revenue ex-TAC of $1,089mn (1.6% yoy) versus our estimate of $1,059mn and non-GAAP EPS of $0.35, including a $0.11 tax benefit, versus our estimate of $0.24. With over $14/share in cash & assets, an operating business generating over $800mn annually in FCF, the beginnings of a focused corporate strategy, and at least $3bn in open market stock repurchases as a catalyst, we believe YHOO represents a compelling risk/reward for investors." Maintain Buy, $22 price target.
Jefferies Brian Pitz - "While we liked what we heard on the earnings call, we still reiterate our Hold rating. Yahoo! is of course cheap on an SOP basis, but this factors in neither any required reinvestment to grow the business, nor the timing from the sale of the remaining Asian assets." Maintain Hold, $18 target
Nomura Brian Nowak - "YHOO reported 3Q:12 revenue of $1.1bn, 1% below us but 1% above the Street estimate. Adjusted EBIT was in line with our estimate. Even more than the results, attention was on new CEO Marissa Mayer's first commentary to the investment community as she outlined YHOO's areas of strategic focus. We are encouraged by the strategic vision and tangible examples of action to fix YHOO. In addition, near-term top-line trends remain troubling as YHOO’s core display business was again weak, growing ~1%, vs. our +6% estimate and the Street at +8%. On the plus side, YHOO’s new management team reaffirmed its commitment to returning the Alibaba cash to shareholders through open market share repurchases. Our TP rises from $17 to $18 due to YHOO's higher cash balance following the Alibaba deal, but we maintain our Neutral rating. FY12E EPS from $0.97 to $1.15; FY13E EPS from $1.07 to $1.13." Maintain Neutral, target up from $17 to $18
Goldman Sachs Heath Terry - "Yahoo! reported better-than-expected 3Q results with revenue ex-TAC of $1,089mn (1.6% yoy) versus our estimate of $1,059mn and non-GAAP EPS of $0.35, including a $0.11 tax benefit, versus our estimate of $0.24. With over $14/share in cash & assets, an operating business generating over $800mn annually in FCF, the beginnings of a focused corporate strategy, and at least $3bn in open market stock repurchases as a catalyst, we believe YHOO represents a compelling risk/reward for investors." Maintain Buy, $22 price target.
Jefferies Brian Pitz - "While we liked what we heard on the earnings call, we still reiterate our Hold rating. Yahoo! is of course cheap on an SOP basis, but this factors in neither any required reinvestment to grow the business, nor the timing from the sale of the remaining Asian assets." Maintain Hold, $18 target
Nomura Brian Nowak - "YHOO reported 3Q:12 revenue of $1.1bn, 1% below us but 1% above the Street estimate. Adjusted EBIT was in line with our estimate. Even more than the results, attention was on new CEO Marissa Mayer's first commentary to the investment community as she outlined YHOO's areas of strategic focus. We are encouraged by the strategic vision and tangible examples of action to fix YHOO. In addition, near-term top-line trends remain troubling as YHOO’s core display business was again weak, growing ~1%, vs. our +6% estimate and the Street at +8%. On the plus side, YHOO’s new management team reaffirmed its commitment to returning the Alibaba cash to shareholders through open market share repurchases. Our TP rises from $17 to $18 due to YHOO's higher cash balance following the Alibaba deal, but we maintain our Neutral rating. FY12E EPS from $0.97 to $1.15; FY13E EPS from $1.07 to $1.13." Maintain Neutral, target up from $17 to $18
Create E-mail Alert Related Categories
13GsRelated Entities
Cantor Fitzgerald, Jefferies & Co, Nomura, Earnings, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
