Yahoo! Yodels With Delight: Fool by Numbers
By Anders Bylund
October 17, 2007
On Oct. 16, Internet veteran and Stock Advisor recommendation Yahoo! (Nasdaq: YHOO) released third-quarter earnings for the period ending Sept. 30, 2007.
- To go beyond Yahoo!'s numbers, sail over to our earnings take.
- While 11.8% revenue growth and flattish earnings won't garner medals in cyberspace, take a look at the big Y's cash generation prowess and very healthy balance sheet. Those are virtually unmatched outside of China and Mountain View.
- Last year's long-term debt was shifted over into a short-term account of essentially the same balance, so despite appearances, the company isn't exactly debt-free.
- CEO Jerry Yang completed his first 100 days behind the wheel to a rousing cheer from the market: Today, the share price spiked as high as 8.8% over last night's closing price.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007
|
Q3 2006
|
Change
|
|
Sales
|
$1,767.5
|
$1,580.3
|
11.8%
|
|
Net Profit
|
$151.3
|
$158.5
|
(4.6%)
|
|
EPS
|
$0.11
|
$0.11
|
0%
|
|
Diluted Shares
|
1,395.1
|
1,442.4
|
(3.3%)
|
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007
|
Q3 2006
|
Change*
|
|
Gross Margin
|
58.1%
|
56.9%
|
1.2
|
|
Operating Margin
|
8.5%
|
12.8%
|
(4.3)
|
|
Net Margin
|
8.6%
|
10.0%
|
(1.5)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q3 2007
|
Q3 2006
|
Change
|
|
Cash + ST Invest.
|
$2,212.1
|
$2,109.1
|
4.9%
|
|
Accounts Rec.
|
$950.0
|
$784.5
|
21.1%
|
|
Liabilities
|
Q3 2007
|
Q3 2006
|
Change
|
|
Accounts Payable
|
$131.6
|
$142.5
|
(7.7%)
|
|
Long-Term Debt
|
$0.0
|
$750.0
|
N/A
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q3 2007
|
Q3 2006
|
Change
|
|
Cash From Ops.
|
$456.7
|
$389.7
|
17.2%
|
|
Capital Expenditures
|
$147.2
|
$240.8
|
(38.9%)
|
|
Free Cash Flow
|
$309.6
|
$148.9
|
107.9%
|
|
Owner Earnings
|
$174.7
|
$67.7
|
158.2%
|
Free cash flow is a Fool's best friend.
Competitive Breakdown
|
Market Cap (in billions)
|
Trailing P/E (ttm*)
|
CAPS Rating
|
|
Yahoo!
|
$37.9
|
55.0
|
**
|
|
Google (Nasdaq: GOOG)
|
$195.3
|
50.8
|
**
|
|
Baidu.com (Nasdaq: BIDU)
|
$10.5
|
185.8
|
***
|
|
IAC/InterActiveCorp (Nasdaq: IACI)
|
$8.4
|
35.8
|
***
|
|
Microsoft (Nasdaq: MSFT)
|
$288.8
|
21.6
|
**
|
Source: Yahoo! Finance.
*Trailing 12 months.
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