On April 17, Yahoo!
- Catch the full story with our earnings take on Yahoo! and its Panama initiative.
- Revenues surged by 6.7% to $1.7 billion because of increases from marketing services and fees. Without accounting for traffic acquisition costs, revenue would have increased by 8.7%.
- While sales were up, earnings slid by 10.9% to $142.4 million, or $0.10 per share -- falling short of estimates. Margins were also down across the board, with particularly heavy drops in operating and net margin.
- Free cash flow rose by an impressive 32.9%.
- Yahoo! is a two-star stock (out of a possible five) in Motley Fool CAPS, our interactive stock database. Microsoft
(NASDAQ:MSFT) , in comparison, also holds a two-star rating, while search-engine giant Google(NASDAQ:GOOG) sports a meager one-star rating in our community.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,671.9 |
$1,567.1 |
6.7% |
|
Net Profit |
$142.4 |
$159.9 |
(10.9%) |
|
EPS |
$0.10 |
$0.11 |
(9.1%) |
|
Diluted Shares |
1,418.2 |
1,493.3 |
(5%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
57.3% |
58% |
(0.7) |
|
Operating Margin |
10.1% |
12.8% |
(2.7) |
|
Net Margin |
8.5% |
10.2% |
(1.7) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,345.9 |
$2,428.5 |
(3.4%) |
|
Accounts Rec. |
$893.2 |
$766.5 |
16.5% |
|
Inventory |
N/A |
N/A |
N/A |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$141.0 |
$107.7 |
30.9% |
|
Long-Term Debt |
$749.8 |
$750.0 |
(0%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$441.2 |
$384.9 |
14.6% |
|
Capital Expenditures |
$118.0 |
$141.7 |
(16.7%) |
|
Free Cash Flow |
$323.2 |
$243.1 |
32.9% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Will Panama Plug Leaks at Yahoo!?
- Foolish Forecast: As Yahoo! Turns
- Yahoo! Goes to 11
- Yahoo! Pinpoints Foreclosures
Yahoo! is a Stock Advisor recommendation, and Microsoft is an Inside Value pick. Grab the keys and take either newsletter on a 30-day free trial to take a look at their other stock selections.
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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
