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) |
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% |
|
$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 |
** |
*Trailing 12 months.
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