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Yahoo Up Big, Not Enough For Wall Street Though
By David Utter
Expert Author
Article Date: 2005-07-19
A nearly 45 percent increase in revenue for the most recent fiscal quarter angers investors in typical financial industry illogic.
HP announces it will put 14,500 people out of work, and Wall Street warmly applauds new CEO Mark Hurd. Another company posts a big increase in revenue, over $875 million USD, and the Street wants Yahoo CEO Terry Semel's head neatly severed and delivered on a platter.
It's the typical counter-intuitive logic of the world's biggest financial market. Yahoo's reported revenue of $875 million falls in line with its own guidance of $855 to $895 million for its second quarter.
While that met the company's estimates, some analysts expected Yahoo to beat those figures. Yahoo shares dropped 10 percent on the announcement, but closed up at $37.73.
Net income grew to 51 cents a share, or $755 million from 8 cents ($112.5 million) the previous year's second quarter. "Yahoo continued to operate full speed ahead in the second quarter," Mr. Semel said in a statement.
Yahoo reported that it sold its remaining shares in rival Google during the second quarter. Those shares arrived as part of a settlement of patent litigation between the two search engine companies.
About the Author:
David Utter is a staff writer for WebProNews covering technology and business. Email him here.
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