Yahoo Earnings Get a Big Lift from China, a Little One from Everything Else

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Yahoo!Marissa Mayer is good, but she's not that good.

Yahoo (YHOO) posted what -- on the surface -- appear to be blowout quarterly results. The online pioneer came through with a profit of $2.64 a share for the three months ending in September, blowing past the $0.23 a share it earned a year earlier and the $0.26 a share that analysts were expecting.

There is, however, a meaty one-time gain baked into those earnings, resulting from the sale of part of its stake in China's Alibaba. Back that out and Yahoo's adjusted profit clocks in at a (still impressive) $0.35 a share.

Surpassing expectations hasn't been a problem at Yahoo. The company has actually beat past Wall Street targets for three consecutive quarters. Yahoo's problem lately has been its inability to drum up much in revenue growth.

Mayer's first quarter as CEO of Yahoo after leaving Google (GOOG) didn't offer any relief on that front. Revenue before traffic acquisition costs rose by a mere 2% to $1.09 billion. Then again, it's hard to pin the blame or even the praise on Mayer. She rolled up her sleeves to tackle her new post a few weeks after the quarter began, taking a brief maternity leave after the quarter came to a close.

Her initiatives to get Yahoo more focused and in sync with its users are unlikely to bear fruit right away. She'll get the time to do that. The market's been generally pleased with her appointment, and Yahoo's balance sheet -- flush with $9.4 billion in greenery -- will give her a big enough easel to experiment on until the company gets it right.

Other Things Worth Watching

• Monster Beverage (MNST) shares should be volatile on Tuesday. The stock took a hit on Monday afternoon after media reports indicated that the Food and Drug Administration was investigating claims that the energy drinks could be a factor in five recent deaths. Energy drinks have come under fire in recent weeks, but naturally Monster is going to counter the claims.

• PC sales may have stalled, but there's still money to be made in making hard drives. Western Digital (WDC) shipped 62.5 million drives in its latest quarter, 28% ahead of where it was a year earlier. The end result is that adjusted earnings more than doubled to $2.36 a share.

Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Google and Western Digital. Motley Fool newsletter services have recommended buying shares of Google and Monster Beverage.





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A.G. SESKIS

Hahahaha ...
I dont see a damn thing that has changed on MY END OF THE WORLD !!!!
The YAHOO SITE ,....is ** still slow as hell / full of stupid ass ads I WONT buy into,...and hasnt changed MY way of life or improved it what so-ever ***.
So ,...who really benefits ??? The CHINESE INVESTORS ???
Certainly NOT ME ,...the user of Yahoo,...funny isnt it how the numbers ONLY reflect a certain 1% of society ,...when in the same breath ,...DONT give a **** about the rest,...the one`s who that it REALLY reflects, are the one`s who funnel them MORE money !!!!
Trust me ,...I have been online since the stupid day it was allow to be accessed by the " public ."
And I have seen NOTHING yet to really benefit me,....but more stupid ass ads. , and more interruptions / delays / waste of my valuable time for access than necessary,...all because they are more interested in more PROFIT,...instead of delivering a product / service " as advertised ".
It`s a damn joke !!
FORCE you to change,...for their benefit ,...NOT yours,....so since when does a product / service intended / created to serve YOU ,..become a less of a PRIORITY to serve YOU,..versus their stupid profit margin to please the Communist China clowns ???
How do we know that YAHOO hasnt already SOLD OUT TO CHINA ,...and they are using OUR info to SPY on us of what we do online ?????
Can anyone ONLINE GUARANTEE they are not already SPYING ON US ??? OR SELLING US OUT FOR PROFIT ????????????
We all know YAHOO cant keep a CEO around for long,...and cant decide which direction to take,....it s SAD,...being one of the 1st in the internet World,....and yet,,..they are STILL are driving the bus with their heads up their butt !!!! How sad is that ???
HELL ,..HIRE ME FOR $ 30 MILL / YR. ...I guarantee I can make some decisions on which way to go !!!!!
And I dont have to be some stupid flunkie College Grad. to figure that out !!!

October 23 2012 at 8:46 AM Report abuse rate up rate down Reply
nelsonbrock

Cmom google. Realize you are losing ground!

October 23 2012 at 7:29 AM Report abuse rate up rate down Reply