Analysts aren’t expecting much from Yahoo when it comes out with earnings tonight. (Tune in here for live coverage at 4 PM.)
Citi’s Mark Mahaney ran through all the numbers in a preview of earnings. He calls for gross revenue to be up 2% y/y, net revenue to be down slightly. The display ad business is expected to be up 18%.
Mahaney’s preview is pretty dull fare until you reach the last bullet point where he delivers the following devastating points about Yahoo’s future:
- Yahoo’s display revenue faces competition from Google and Facebook.
- Yahoo is losing share of overall Internet usage.
- Yahoo doesn’t have the assets in place to take advantage of trends in Mobile and Video.
- Yahoo has lost a number of key executives.
- There is “no near-term positive catalyst”
Oof. And if all that wasn’t bad enough, the specter of private equity groups and AOL wanting to take Yahoo over will hang over the earnings call. We’ll be curious to hear Bartz address the speculation.
The key consensus estimates:
- Gross revenue: $1.6 billion
- Net revenue: $1.13 billion
- Operating income: $178 million
- GAAP EPS: $0.14
- Guidance for Q4 Gross Revenue: $1.74 billion