Yahoo!'s Investment Income Boosts Results
November 13th, 2008The Internet media firm posted $0.08 earnings per share for first quarter when analysts forecast $0.04. However, for those that look close enough, of the $4.285 million net income some $1.446 million was from investments, not operations.
Yahoo! has more than $100 million cash on hand. Each quarter it can generate just over $1 million in income from that alone. Without the investment income, its first quarter ending March 31 EPS would have been more in line with analysts' forecast at $0.05 EPS, just a penny better.
So another way to look at YHOO may be to automatically account for $0.03 EPS just on its investment income each quarter, as long as it has the cash. And then see where it is without that.
Meanwhile, revenue was up 20% vs. fourth quarter at $30.2 million revenue. That was 200% better than 1Q98. While advertising remained the main revenue stream, commerce revenue gained and accounted for 22% of revenue. Page views now reach 95 million per day, up from 65 million last quarter, according to Yahoo! president Tim Koogle.
Here's a snapshot of the full results:
The Numbers On Yahoo! First Quarter '98
| Yahoo | 1Q98 | 1Q97 | Percent |
| (NASDAQ:YHOO) | (millions) | (millions) | change |
| Net revenues | $ 30.21 | $ 10.07 | 200% |
| Income (loss) from operations | $ 3.67 | $ (2.33) | |
| Investment income, net | $ 1.45 | $ 1.39 | 4% |
| consolidated subsidiaries | $ 0.24 | $ 0.20 | 20% |
| Income (loss) before income taxes | $ 5.36 | $ (0.74) | |
| Provision for income taxes | $ 1.07 | - | |
| Net income (loss) | $ 4.29 | $ (0.74) | |
| Diluted net income (loss) per share: | $ 0.08 | $ (0.02) | |
| Wtd. Fully diluted shares | 53.37 | 42.23 | 26% |
| Net income without investment income | $ 2.84 | ||
| EPS without investment income | $ 0.05 | ||
| Operating income earnings per share | $ 0.07 | ||
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For a look at Yahoo!'s value per user vs. the other top 10 Web sites see today's Internet Stock Report
