Yahoo! Lurches Across the Line: Fool by Numbers

On Jan. 17, Yahoo! (Nasdaq: YHOO  ) released fiscal 2005 earnings for the period ended Dec. 31, 2005.
  • Large one-time gain in Q4 boosted net earnings.
  • Adjusted net income of $0.58 per share versus adjusted net income of $0.36 for the prior year.
  • Complex restructuring transaction lowered effective tax rate to 3% for Q4, lowering the full-year rate to 30%.

(Figures in thousands, except per-share data)

Income Statement Highlights

FY 2005

FY 2004

% Change

Sales*

$5,257,668

$3,574,517

+47.1%

Net Profit

$1,896,230

$839,553

+125.9%

EPS

$1.28

$0.58

+120.1%

Yahoo!'s GAAP revenues differ from the net revenues reported by other news services.

Get back to basics with a look at the income statement.

Margin Checkup

FY 2005

FY 2004

Change

Gross Margin

61.35%

63.67%

-2.33%

Op. Margin

21.07%

19.26%

+1.81%

Net Margin

36.07%

23.49%

+12.58%



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash + ST Invest.

$2,560,834

$3,511,975

-27.1%

Inventory

--

--

N/A

Accounts Rec.

$721,723

$479,993

+50.4%



Liabilities

Q4 2005

Q4 2004

% Change

Long-Term Debt

$749,995

$750,000

0%

Accounts Pay.

$70,291

$48,205

+45.8%



Cash Flow Highlights

Full Year

FY 2005

FY 2004

% Change

Cash From Ops.

$1,700,713

$1,089,821

+56.1%

Capital Expend.

$408,934

$245,501

+66.6%

Free Cash Flow

$1,291,779

$844,320

+53.0%



Find out why Fools always follow the money.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had shares of Microsoft, but no positions in any other firm mentioned. CNET is a Motley Fool Rule Breakers recommendation. Microsoft is an Inside Value recommendation. Time Warner is a Stock Advisor recommendation. Fool rules are here.


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