Yahoo Exceeds, But Does It Matter?

Yahoo Inc. (Nasdaq: YHOO)’s earnings for the first quarter of 2008 have exceeded Wall Street expectations, but that might not matter in the company’s quest to solicit a higher bid from Microsoft Corp. (Nasdaq: MSFT).

For the quarter, Yahoo pulled in $542 million, or 37 cents per share, on revenues of $1.82 billion. In the same quarter last year, it took in $142 million, or 10 cents per share, on revenues of $1.67 billion. Earnings this quarter were helped by a $401 million gain from the IPO of Alibaba.com, in which Yahoo has a stake.

Excluding that on a non-GAAP basis, Yahoo earned 11 cents per share, which exceeded the 9 cents that Wall Street Analysts were expecting. While this is all well and good, it won’t do much to help Yahoo’s case that Microsoft’s bid undervalues the company. CEO Steve Ballmer said yesterday that an impressive quarter from Yahoo would not influence his view that the offer was fair. (See What Will Become of Yahoo?)

Microsoft has set a deadline of this Saturday for Yahoo to accept its bid or face a proxy battle.

— Raymond McConville, Reporter, Light Reading

delphi 12/5/2012 | 3:42:44 PM
re: Yahoo Exceeds, But Does It Matter? terry did a great job when he first arrived and then did nothing to leverage his market position. Yahoo is still an amazing brand and I am shocked no else is entering the fray. Ad words will die out and a new wave of advertising is coming. Yahoo's footprint and content deals is a tremendously valuable asset.

Replacing Terry with Jerry was a big mistake.
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