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.
Meanwhile, revenue was up 20% vs. fourth quarter at $30.2 million revenue. That was 200% better than 1Q98. While advertising remained the main revenue stream, commerce revenue gained and accounted for 22% of revenue. Page views now reach 95 million per day, up from 65 million last quarter, according to Yahoo! president Tim Koogle.
Here’s a snapshot of the full results:
The Numbers On Yahoo! First Quarter ’98
Yahoo |
1Q98 |
1Q97 |
Percent |
(NASDAQ:YHOO) |
(millions) |
(millions) |
change |
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