Yahoo! Inc. (NASDAQ:YHOO) take heat post earnings

Yahoo! Inc. (NASDAQ:YHOO) reported earnings for the three months ended Mar2016 on April 19, 2016. The company earned $0.08 per share on revenue of $1.09B. Analysts had been modeling earning per share of $0.07 with $1.08B in revenue.

Yahoo! Inc. (YHOO) on April 19, 2016 reported results for the quarter ended March 31, 2016.

“I’m pleased that we delivered Q1 results in line with our expectations. Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth,” said Marissa Mayer, CEO of Yahoo. “In tandem, we made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders.”

Business Highlights

• Strategic Alternatives Update

• The Board of Directors at Yahoo formed a strategic review committee of independent directors to consider strategic alternatives for the company alongside its continued consideration of a reverse spin. Since the launch of the process in February, management has worked diligently with the committee and its independent legal and financial advisors to engage with interested strategic and financial parties.


• Company Updates


• Introduced an enhanced mobile search experience making it easier for users to get the most relevant, specialized information about sports teams, players, presidential candidates and movies.


• Launched new features for Yahoo Mail Android and iOS apps that help users stay organized and get more things done quickly. New features include customizable swipe options, actionable notifications, recent attachment features, new colorful themes and 3D gestures.


• Unveiled the new Yahoo App and Homepage that allows users to more easily access related news they’re interested in, share their commentary on news they read, and stay apprised of developments with real-time notifications when stories are updated.

Yahoo! Inc. earnings per share showed a decreasing trend of -162% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 58%.Analysts project EPS decline over the next 5 years at -0.23%. It has EPS annual decline over the past 5 fiscal years of -48.2% when sales declined -4.7. It reported -11.3% sales drop, and -569.3% EPS decline in the last quarter.

The stock is trading at $37.94, up 45.09% from 52-week low of $26.15. The stock trades down -13.34% from its peak of $43.78 and 7.51% above the consensus price target of $40.79. Its volume clocked up at 12.83 million shares which is lower than the average volume of 14.94 million shares. Its market capitalization currently stands at $35.89B.