Yahoo!'s Investment Income Boosts Results
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Yahoo! beat the Street and then some, at first glance.
The Internet media firm posted $0.08 earnings per share for first quarter when analysts forecast $0.04. However, for those that look close enough, of the $4.285 million net income some $1.446 million was from investments, not operations.
Yahoo! has more than $100 million cash on hand. Each quarter it can generate just over $1 million in income from that alone. Without the investment income, its first quarter ending March 31 EPS would have been more in line with analysts' forecast at $0.05 EPS, just a penny better.
So another way to look at YHOO may be to automatically account for $0.03 EPS just on its investment income each quarter, as long as it has the cash. And then see where it is without that.
Here's a snapshot of the full results:
The Numbers On Yahoo! First Quarter '98
|Net revenues||$ 30.21||$ 10.07||200%|
|Income (loss) from operations||$ 3.67||$ (2.33)|
|Investment income, net||$ 1.45||$ 1.39||4%|
|consolidated subsidiaries||$ 0.24||$ 0.20||20%|
|Income (loss) before income taxes||$ 5.36||$ (0.74)|
|Provision for income taxes||$ 1.07||-|
|Net income (loss)||$ 4.29||$ (0.74)|
|Diluted net income (loss) per share:||$ 0.08||$ (0.02)|
|Wtd. Fully diluted shares||53.37||42.23||26%|
|Net income without investment income||$ 2.84|
|EPS without investment income||$ 0.05|
|Operating income earnings per share||$ 0.07|
|© 1998 Mecklermedia. Internet.com|
For a look at Yahoo!'s value per user vs. the other top 10 Web sites see today's Internet Stock Report