Mark, I couldn't take my eyes off...Yhoo's securities gain.
It appears there's more money to be earned on investments...than there is in their core business.
Kind of reminds me of Dell.It appears to me that Yhoo's real earnings are investment banker kind of deals.
Take out the 40.7mil on investment gains and they'd only have made $37.3, and with a P/E of only 1655...that's really not a big deal.
But, I'm sure the fact that a 145mil Japanese clicked on to Yhoo should make it a compelling investment still.
>Santa Clara, California, April 5 (Bloomberg) -- Yahoo! Inc., the top Web-navigation company, said its first-quarter earnings surged on higher revenue from electronic commerce and advertising, particularly outside the U.S.
Net income rose to $77.9 million, or 13 cents a share, after a $40.7 million gain from the exchange of equity securities. That compares to net income of $1.8 million, or break-even per share, a year ago. Revenue more than doubled to $228.4 million from $103.9 million. Before amortization and some other costs, Yahoo's profit was $63.3 million, or 10 cents a share, a penny above analyst estimates of 9 cents, according to First Call/Thomson Financial.
Yahoo, the brainchild of two Stanford students that's become an Internet juggernaut, has been adding services such as finance programs to extend the time that users stay on its network of Web sites. Merchants and advertisers are paying more to reach the company's audience, which also is growing rapidly outside the U.S.
``Their ability to take that traffic and leverage that into the e-commerce space is very attractive,' said Patrick Winton, an analyst at E*Offering, who rates the stock a ``strong buy.'
Yahoo also said it hired Susan Decker, the global head of research at Donaldson, Lufkin & Jenrette, as its chief financial officer and senior vice president of finance and administration. She will join Yahoo in June, succeeding CFO Gary Valenzuela, who plans to retire in July.
Earlier this year, Decker was named to a Financial Accounting Standards Board advisory council on standards.
Monthly Traffic
The company said its audience in March grew to more than 145 million users worldwide, including 14 million users in Japan.
Traffic to Yahoo's Web sites rose to an average 625 million page views a day in March, compared to 465 million a day in December. A page view is one electronic page of information displayed on a user's request.
Yahoo Japan's traffic, which is included in the company's total page views, rose to more than 65 million page views a day in March from 39 million a day in December.
Santa Clara, California-based Yahoo's operations outside the U.S., excluding Yahoo Japan, represented 14 percent of the company's total revenue.
In the year-ago quarter, Yahoo reported profit before costs for amortization and employee payroll taxes on non-qualified options of $17.7 million, or 3 cents a share.
Yahoo shares today fell 1 13/16 to 165 9/16 in regular Nasdaq trading. The shares dropped as low as 159 in after-hour trading.
The results were released after the close of regular trading.
Apr/05/2000 17:25 |
