Digtital earnings season kicks off today, with Yahoo, Intel, and McClatchy (MNI). From a macro perspective, the key question is whether weakness in the housing sector is beginning to affect other sectors of the economy (namely, this one). Since the mortgage crisis did not fully kick in until late in Q3, the commentary about current tone of business and the Q4 outlook will be more important than the Q3 results.
At Silicon Alley Insider, we will be covering the Yahoo results live. This means high-level analysis shortly after the release, followed by commentary and analysis during the conference call. If you have particular questions you would like us to address, please post them in the comments or email them to [email protected].
Yahoo (YHOO): With no preannouncement from Yahoo, we expect Q3 revenue and earnings will be within the guidance range. The risk to the stock is the Q4 outlook, which could be weaker than expected (given the display advertising weakness we’ve seen at MySpace, AOL, etc,). Key points:
- Revenue per search. The single most important part of Yahoo’s business right now is search: Is Panama increasing revenue per search? How much?
- Layoffs? The slowdown in Yahoo’s revenue growth has made the company too fat. We would not be surprised to hear talk of cost cuts and reorganization. We think the market would like this.
- Strategy. New CEO Jerry Yang has had his 100 days (almost). Time for a well-articulated plan of attack.
McClatchy (MNI): Only three things matter: 1) rate of advertising decline, 2) growth of online revenue (if any), and 3) liquidity (how long will the company be able to meet its debt obligations)?