****Yahoo Earnings May Reveal Case Of The Blues
SAN FRANCISCO, CALIFORNIA, U.S.A., 2000 OCT 10 (NB) -- By Ian Stokell, Newsbytes.
Yahoo Inc. [NASDAQ:YHOO] plans to release its third quarter earnings today, under increased scrutiny and growing concern that dot-com ad revenue may be on the decline.
The Internet blue chip company will reportedly release its new financial report after markets close, according to the Wall Street Journal. But investors are already concerned over the current climate of financial decline for technology stocks, and Internet stocks in particular. And there have been concerns over Yahoo's advertising revenue since last summer when online-ad agencies and Internet companies said they were increasingly unwilling to pay the company's rates, said the WSJ.
The WSJ quotes Paul Foster, a strategist at 1010wallstreet.com, a Chicago options-strategy firm, who said, "It'll create additional selling pressure for technology stocks" if Yahoo's earnings disappoint investors. "People are nervous," he added.
First Call/Thomson Financial expects Yahoo to report 12 cents a share, excluding amortization, goodwill, employer payroll taxes and other items, up from 7 cents a year ago, and the firm's Joe Cooper said that, based on its earnings history, Yahoo traditionally beats analysts' estimates by at least a penny a share and reports revenue that reaches the high end of forecasts. First Call/Thomson Financial also expects Yahoo to generate $281 million in revenue, the consensus estimate, up from $155 million in the same period last year. Revenue estimates range from $279 million to $285 million, said the WSJ.
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