Wall Street Overjoyed By Yahoo's Fourth Quarter Earnings

Owing to the impact of economic downturn over online advertising, Yahoo Inc. has reported a net loss of $303.5 million for the final quarter for the fiscal year 2008, as against the net profit of $205.7 million reported a year earlier.

However, the analysts asserted that the internet company coped with the economic downturn better than expected, as the loss is primarily attributed to one-off costs.

In spite of the quarterly loss, company’s new chief exec, Carol Bartz, who recently took over from Jerry Yang, dismissed the talks of selling the company by saying that “I didn’t come here to sell the company”.

Yahoo managed to surpass the forecasted figures by a whisker, as the company posted profit per share before some special items, such as on sales and employee stock options, was 17 cents per share, 4 cents more than the profits for the same period a year earlier, beating the analysts’ forecasts of 12 cents a share.

Though the revenues were down, the company had managed to post revenues of $1,806million for the final quarter of 2008, as compared to $1,832million, as reported a year back.

While announcing the final results, Ms Bartz said in a statement, “The company made important investments while aggressively managing costs, leaving us better positioned to weather the economic downturn and emerge stronger when advertiser spending improves”.

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Our Comments

Yahoo shares are up 5.2 percent in after hours trading which amounts to a mere 59 cents and should rise again during today's trading sessions. This first quarter of the year will be crucial for Carol Bartz, the new CEO, to impose her own way of doing things. There appears to be an eery feeling about Yahoo at the moment and we believe that while the company is down, it is not out. Maybe 2009 will mark the resurgence of the firm amidst the economic chaos.

Related Links

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