By
Anders Bylund
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More Articles
October 17, 2007
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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
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Q3 2007
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Q3 2006
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Change
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Sales
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$1,767.5
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$1,580.3
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11.8%
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Net Profit
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$151.3
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$158.5
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(4.6%)
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EPS
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$0.11
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$0.11
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0%
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Diluted Shares
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1,395.1
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1,442.4
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(3.3%)
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Get back to basics with the income statement.
Margin Checkup
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Q3 2007
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Q3 2006
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Change*
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Gross Margin
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58.1%
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56.9%
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1.2
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Operating Margin
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8.5%
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12.8%
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(4.3)
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Net Margin
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8.6%
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10.0%
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(1.5)
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*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
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Assets
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Q3 2007
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Q3 2006
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Change
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Cash + ST Invest.
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$2,212.1
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$2,109.1
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4.9%
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Accounts Rec.
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$950.0
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$784.5
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21.1%
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Liabilities
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Q3 2007
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Q3 2006
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Change
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Accounts Payable
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$131.6
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$142.5
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(7.7%)
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Long-Term Debt
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$0.0
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$750.0
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N/A
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The balance sheet reflects the company's health.
Cash Flow Highlights
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Q3 2007
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Q3 2006
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Change
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Cash From Ops.
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$456.7
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$389.7
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17.2%
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Capital Expenditures
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$147.2
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$240.8
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(38.9%)
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Free Cash Flow
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$309.6
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$148.9
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107.9%
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Owner Earnings
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$174.7
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$67.7
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158.2%
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Free cash flow is a Fool's best friend.
Competitive Breakdown
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Market Cap (in billions)
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Trailing P/E (ttm*)
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CAPS Rating
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Yahoo!
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$37.9
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55.0
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**
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Google (NASDAQ:GOOG)
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$195.3
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50.8
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**
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Baidu.com (NASDAQ:BIDU)
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$10.5
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185.8
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***
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IAC/InterActiveCorp (NASDAQ:IACI)
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$8.4
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35.8
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***
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Microsoft (NASDAQ:MSFT)
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$288.8
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21.6
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**
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Source: Yahoo! Finance.*Trailing 12 months.
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