Ralph
19.12.2000, 23:44
Analyst Says Yahoo! May Be in Danger of Warning
By TSC Staff
12/19/00 5:07 PM ET
SG Cowen analyst Scott Reamer warned that Yahoo! (YHOO:Nasdaq - news) may be in danger of preannouncing disappointing earnings for the fourth quarter, especially considering that the weak advertising market has already drawn confessions out of the likes of DoubleClick (DCLK:Nasdaq - news) and Time Warner (TWX:NYSE - news).
In a brief note, Reamer wrote that with traditional and online media companies issuing profit warnings, "it is becoming more difficult for Yahoo! to escape the pressure."
The analyst wrote that if Yahoo were to preannounce, it would likely come this week. Another possibility, Reamer wrote, would be for Yahoo to meet the consensus estimate but guide Wall Street lower for 2001 when the company reports earnings in early January. Additionally, Yahoo could issue a profit warning for the first quarter in late March, he speculated.
According to First Call/Thomson Financial, analysts expect Yahoo to earn 13 cents a share for the fourth quarter and 48 cents for the year. Wall Street is also looking for earnings of 13 cents in the first quarter and 58 cents for 2001.
If Yahoo doesn't warn, the stock will likely remain in the $30 to $35 range, but the shares could fall to the low to mid $20s if an announcement does come, Reamer wrote.
Shares of Yahoo ended the regular Nasdaq trading session at $28, a 52-week low, but slipped to $27.50 in after-hours activity on the Island ECN.
Ralph, den es nicht wundern würde !
By TSC Staff
12/19/00 5:07 PM ET
SG Cowen analyst Scott Reamer warned that Yahoo! (YHOO:Nasdaq - news) may be in danger of preannouncing disappointing earnings for the fourth quarter, especially considering that the weak advertising market has already drawn confessions out of the likes of DoubleClick (DCLK:Nasdaq - news) and Time Warner (TWX:NYSE - news).
In a brief note, Reamer wrote that with traditional and online media companies issuing profit warnings, "it is becoming more difficult for Yahoo! to escape the pressure."
The analyst wrote that if Yahoo were to preannounce, it would likely come this week. Another possibility, Reamer wrote, would be for Yahoo to meet the consensus estimate but guide Wall Street lower for 2001 when the company reports earnings in early January. Additionally, Yahoo could issue a profit warning for the first quarter in late March, he speculated.
According to First Call/Thomson Financial, analysts expect Yahoo to earn 13 cents a share for the fourth quarter and 48 cents for the year. Wall Street is also looking for earnings of 13 cents in the first quarter and 58 cents for 2001.
If Yahoo doesn't warn, the stock will likely remain in the $30 to $35 range, but the shares could fall to the low to mid $20s if an announcement does come, Reamer wrote.
Shares of Yahoo ended the regular Nasdaq trading session at $28, a 52-week low, but slipped to $27.50 in after-hours activity on the Island ECN.
Ralph, den es nicht wundern würde !